Halifax has reported that average house prices fell by 0.1% in June.
In the latest quarter (April to June) house prices were 0.9% lower than in the preceding three months (January to March).
However, house prices in June were still 2.5% higher than in the same month a year earlier.
The average price of a home is now £237,616, Halifax said.
Russell Galley, managing director of Halifax, said: “Though only a small decrease, it is notable as the first time since 2010 – when the housing market was struggling to gain traction following the shock of the global financial crisis – that prices have fallen for four months in a row.
“Activity levels bounced back strongly in June, which is typically the busiest month for mortgage activity in the UK. New mortgage enquiries were up by 100% compared to May, and with prospective buyers also revisiting purchases previously put on hold, transaction volumes rose sharply compared to previous months. However, whilst encouraging, it remains too early to say if this level of activity will be sustained.
“The near-term outlook points to a continuation of the recent modest downward trend in prices through the third quarter of the year, with sentiment indicators, based on surveys of both agents and households, currently at or around multi-year lows.
“Of course, come the autumn, the macroeconomic landscape in the UK should be clearer and the scale of the impact of the pandemic on the labour market more apparent. We do expect greater downward pressure on prices in the medium-term, the extent of which will depend on the success of government support measures and the speed at which the economy can recover.”
Jeremy Leaf, an estate agent in north London, added: “Not surprisingly this widely-respected index reports two different elements of the market. On the one hand, prices have fallen for the fourth consecutive month but new mortgage enquiries are surging as buyers and sellers emerge from lockdown. The direction of travel in coming months will depend on the degree of support offered by the government and how quickly the economy can recover when furlough in particular is withdrawn.
“Another factor of course now is stamp duty and any other measure introduced by the Chancellor to increase activity. Certainly, we are starting to see supply increasing and greater realism in sales agreed so do not expect prices to rise sharply in the near term.”
