UK house prices fell by 1% in June, the largest monthly fall since January, according to new figures.
The rolling quarterly figure, which measures movement in house prices over the previous three months, was down 0.1%.
This is the third month in a row that house prices have recorded a fall, the first time that has happened since 2012.
Annual house price growth has also fallen, from 3.3% in May to 2.6% in June, the lowest annual increase in four years.
The latest figures are a further sign of weakening in the UK housing market and comes just days after a group of economists from the London School of Economics warned that the UK could be heading for a ‘significant correction’ in house prices.
Martin Ellis, housing economist at Halifax, pointed to rising inflation as a contributing factor.
“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.”
The figures come as more economists warn that the housing market, and London in particular, is vulnerable to a correction.
Simon French of Panmure Gordon warned on Thursday that house prices in the Capital are not sustainable.
He said; “These prices are only sustainable in a world of permanently low interest rates and low unemployment. Any sharp correction in either the credit or the labour market has the capital’s housing market vulnerable to an exceptionally painful correction.”
Falling house prices could leave many households with outstanding mortgage debt face with the prospect of negative equity. If your home is in negative equity, or you’re worried falling house prices could push you into negative equity, contact our expert team for a consultation on o161 631 2727 or online at negativeequityuk.com.