(Sharecast News) – The rise in UK house prices slowed dramatically in July, according to data out on Wednesday from the Office for National Statistics.
The average selling price was £290,000 in July, up from £288,000 in June. However, the year-on-year growth in prices slowed to just 0.6%, from a revised 1.9% the previous month.
What’s more, when adjusted for seasonal or calendar effects on the data, prices actually fell 0.5% month-on-month in July, compared with a rise of 0.7% in June.
The government statistics confirm non-official data from Halifax and Nationwide showing a big slowdown in the UK property market over the past few months.
Gabriella Dickens, economist at Pantheon Macroeconomics, said the market was beginning to feel the effects of a jump in mortgage rates earlier in the summer.
“Note that the official index is based on completed transactions, which depend on mortgage offers made over the previous few months. As a result, further declines in the official index over the coming months look likely, given that timelier measures point to further weakness,” Dickens said.