House prices in the UK fell by 0.1% in the second quarter of 2017 and annual price growth fell to 2.6%, according to the latest lender index.

Prices also fell month on month in June, taking the overall average to £218,390, the data from the Halifax shows. It also shows that annual growth is now at its lowest since May 2013.

‘Although employment levels continue to rise, household finances face increasing pressure as consumer prices grow faster than wages. This, combined the new stamp duty on buy to let and second homes in 2016, appears to have weakened housing demand in recent months,’ said Martin Ellis, Halifax housing economist.

‘A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale should help continue to underpin house prices over the coming months,’ he added.

 

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