House prices in the three months to July were 1.6% higher than in the previous quarter, up from 1.1% in June, according to the latest Halifax house price index.
However, prices were down by 1%, month on month.
The annual rate of growth was unchanged at 8.4%, the lowest since July 2015.
Halifax said the average price of a home in July was £214,678.
Martin Ellis, Halifax housing economist, said: “There are signs that house price growth is slowing with a deceleration in both the annual and quarterly rates of increase in the past few months. Nonetheless, the current rates remain robust.
“July’s monthly decline largely offsets June’s increase. The month-on-month changes, however, can be erratic and falls often occur within an upward trend. Overall, it remains too early to determine if there has been any impact on the housing market as a result of June’s EU referendum result.”
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “As we continue to feel the effects of the UK’s decision to leave the EU, these figures provide clear evidence that house price inflation has plateaued. The result of referendum is creating a new economic landscape, as noted by yesterday’s interest rate decision, but it’s important to remember that house prices are still rising at levels well above inflation.
“We cannot let any dampening in rising house prices lead to complacency or make us forget the fundamental problems which continue to plague the property market. There is a critical shortfall of housing stock in Britain, and if the government fails to address this burning issue, even more people will be locked out of homeownership.
“The housing minister must therefore do all in his power, including mobilising the public sector and incentivising private construction firms, to ensure that we build the thousands of new, affordable homes that are needed every year. Such a large-scale change in housing policy would be a significant step towards building a property market that is fair for all.”
