UK house prices fall in July as tax cut is scaled back

British house prices fell in July after a coronavirus emergency tax break for buyers was scaled back at the end of June but demand for bigger homes as a result of the pandemic is likely to support the market, mortgage lender Nationwide said.

In monthly terms, house prices fell by 0.5 per cent from June, their first fall since March, slowing the annual increase to 10.5 per cent from June's leap of 13.4 per cent which was the steepest rise in 17 years.

Economists polled by Reuters had expected a less marked cooling of the market, predicting prices would rise by 0.6 per cent from June and by 12.1 per cent in annual terms.