Average UK house prices fell by 1% between May, and June, according to Halifax, the first monthly decline since January.

This takes the average UK property price to £218,390, which is still £63,727 (41%) higher than its low point of £154,663 in April 2009.

Prices are also down on a quarterly basis, which is considered by many experts to be the most reliable measure of property price movements.

Halifax noted that house prices in the last three months (April-June) were 0.1% lower than in the previous three months (January-March).

This was the third quarterly fall in a row, which hasn’t happened for the last five years.

Dip in annual inflation

The price drops have pulled annual price inflation back to 2.6%, its lowest annual rate since May 2013.

Martin Ellis, Halifax housing economist, said: “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.”

Jonathan Hopper, managing director of Garrington Property Finders, added: “This first snapshot of the post-election property market confirms what many feared – there has been no relief rally.

“Across the UK market as a whole, average prices are flatlining rather than falling, and this has dragged down the annual rate of growth to its lowest level for more than four years.”

“In London it is a different matter. The capital’s prime property prices have been under pressure for more than a year and we’re increasingly seeing astute buyers seize the opportunity to secure substantial discounts.”