UK House prices slide down 0.2 percent in the three months to July

The report from Halifax and IHS Markit showed that the house prices in the UK rose 0.4 percent m-o-m in July after dropping 0.9 percent in June (revised from initially reported 1 percent fall). That was the biggest monthly growth since the end of 2016 and exceeded economist forecast of 0.2 percent advance.

On a three-month basis, however, the house prices fell 0.2 percent q-o-q in three months to July. That marked the fourth successive quarterly fall and the worst run since 2012.

Meanwhile, the prices in the three months to July were 2.1 percent higher than in the same period of 2016. That was lower than in June (+2.6 percent y-o-y) and the lowest annual rate since April 2013 (+2.0 percent y-o-y). Economists expected an increase of 2 percent.

Russell Galley, Managing Director, Halifax Community Bank, noted that the house prices continued to remain broadly flat, as "squeeze on spending power, together with the impact on property transactions of the stamp duty changes in 2016 now being realized, along with affordability concerns, appear to have contributed to weaker housing demand." However, he added that "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."