Housing growth slows to 7.9pc
In June annual growth reached 9.6% after house prices increased by 1.7% in one month to reach £200,280. They slipped back to £198,880 July.
Quarterly housing growth stood at 2.4% to July after falling from 3.3% to June.
First-time buyers shouldn’t bank on this summer lull continuing however, as Stephen Smith, director, Legal & General Mortgage Club & Housing, said: “We don’t expect this trend to last.
“Strong market conditions, driven by low inflation and rising wages, along with the MPC’s recent hints of rate rises, are likely to drive more people to the market in the remainder of the year.
“Supply is already failing to keep up with demand, and unless more homes are built to alleviate overcrowding in the market, increasing demand is likely to cause house prices to climb at a greater pace compared to recent months.”
The stock of homes available for purchase fell for a third successive month in June to another record low.
Stephen Noakes, Halifax managing director, retail customer products, said: “Supply is highly restricted with the stock of homes available for sale falling further to new record lows.
“This combination of well-supported demand and tight supply is likely to ensure that house price growth remains relatively strong in the near-term.”
“This will make homes unaffordable for many looking to buy, meaning that they will be forced to wait until later in life to follow their dream of homeownership.
“The country needs to build around 250,000 extra houses per year to bring balance to the market, and make homes more affordable for those seeking to own their own home.”