UK house prices slipped for the first time in six months in June, with the easing out of a tax break during the month.
The average UK house price slipped by 0.5% in June to £260,358, marking the first monthly decline since January. Annual house price inflation eased to 8.8%, but average prices remain £21,000 year on year.
Halifax Managing Director said the cooling in June was expected with the phasing out of the stamp duty holiday. Mortgages approved earlier were unlikely to benefit from the maximum tax holiday due to time constraints to fulfill requirements.
Slower annual price gains were recorded in the two Midlands regions and Greater London, while all the other regions saw an acceleration in inflation.
Annual growth is expected to slow by the end of 2021, with unemployment likely to climb as support measures are removed and the record buyer demand has waned.
Buyers are still paying about £500 in stamp duty, which will increase to around £3,000 when the situation normalizes in October.