Pace of house price growth drops for fourth consecutive quarter

House prices grew at their slowest annual rate for more than four years in July, figures show.

The latest Halifax House Price Index showed values rose 2.6% in July to £219,266, the lowest annual rate since the 2% recorded in April 2013.

Prices also fell for the fourth successive time on a quarterly basis, the first time this has happened since November 2012.

The figures were up 0.4% on a monthly basis.

Russell Galley, managing director of Halifax Community Bank, said low wage growth along with Stamp Duty changes was hitting the spending power of buyers.

He said: “A continued low mortgage rate environment, combined with an ongoing shortage of properties for sale, should help continue to support house prices over the coming months.”

Jonathan Hopper, managing director of Garrington Property Finders, said: “There was a time when four falls in a row would have set alarm bells ringing. But so far all the indications are that the market is seeing a cooling rather than a correction.

“The speed of price growth has slowed substantially, and at a national level average prices are still flat-lining rather than falling.

“But what growth there is is meandering and listless, with prices being propped up by record low levels of supply.”

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