The two per cent drop was repeated across the country, with house prices falling by 3.7 per cent across the UK as the flow of home movers calmed down, according to the latest cadastral data.
This was the biggest monthly drop since 1992, according to Tom Bill, head of British housing research at Knight Frank, “Like a bad Hollywood blockbuster, the British housing market looks set to have a predictable finale this year after an explosive start.
‘Demand is still robust and the economic background increasingly has a feel-good factor as Covid disappears in hindsight. The key question is how much supply increases as autumn approaches.
“We expect seasonal conditions and demand-driven buyers to play an important role in driving supply higher, which should begin to dampen growth in house prices. The monthly decline in July was the largest since 1992 and the second steepest since 1968, and we therefore expect annual growth to end the year with single figures. ”
Average prices across the country rose 13.2 percent in July the year before when the stamp duty was first introduced – heralding months of record sales of homes.
London house prices saw the smallest increase in the country, a rise of 2.2 per cent, compared with the Northeast, which topped the table with a house price rise of 10.8 per cent.