House prices in the UK dropped 0.5% in June from May, the first monthly fall since January, according to Halifax, one of the UK’s biggest mortgage lenders. The annual growth rate has fallen to 8.8% from May’s 14-year high of 9.6%, as the stamp duty holiday is being phased out now until September.
Nick Hyland, Director of property investment company Track Capital, said: “Millions of people have their eyes on the clock, hearts in their mouths as the seconds tick down to one of the biggest moments of their lives – and that’s just home-movers trying to beat the end of the stamp duty holiday.
“House prices have been rising faster than the hopes of England football fans, and this is the first sign of the market pausing to catch its breath.
“The first monthly fall since January is a symptom of the stamp duty holiday starting to taper out, and there should be a slow return to normality as the market settles into a new equilibrium.
“However, we’re still expecting prices to be supported by people making lifestyle changes and looking for that perfect property away from the cities.
“With the market so volatile, if you’re thinking of buying at the moment, it’s worth getting expert advice to make sure you’re not paying over the odds.”