House prices have fallen for a third consecutive quarter in a row for the first time since November 2012. Halifax’s House Price Index for June 2017 showed the average value of a UK property had dropped 0.1% in the second quarter when compared with the first.

Prices were still 2.6% up year-on-year for the second quarter, although had dropped 1% for June on the figure for May. The annual rise is the lowest since May 2013 and has fallen from a peak of 10% in March 2016.

Martin Ellis, Halifax housing economist, said: “House prices have flattened over the past three months.

“Overall, prices in the three months to June were marginally lower than in the preceding three months.

“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.

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

Halifax’s report found the average price for a property was £218,390 in June .

It also revealed sales volumes had fallen by 3% between April and May, although the number of mortgages approved rose slightly (0.2%) in the same period. The report said the apparent stability of approvals suggested the sales market would remain steady over the coming months.

A lack of supply also continues to support prices. RICS reported new instructions among its members fell for a 15th month in a row in May, while the number of properties on agents’ books is at an all-time low.

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