UK house-price growth slowed in July, ONS says

The rise in UK house prices slowed dramatically in July, according to data out on Wednesday from the Office for National Statistics.

The average selling price was £290,000 in July, up from £288,000 in June. However, the year-on-year growth in prices slowed to just 0.6%, from a revised 1.9% the previous month.

What's more, when adjusted for seasonal or calendar effects on the data, prices actually fell 0.5% month-on-month in July, compared with a rise of 0.7% in June.

The government statistics confirm non-official data from Halifax and Nationwide showing a big slowdown in the UK property market over the past few months.

Gabriella Dickens, economist at Pantheon Macroeconomics, said the market was beginning to feel the effects of a jump in mortgage rates earlier in the summer.

"Note that the official index is based on completed transactions, which depend on mortgage offers made over the previous few months. As a result, further declines in the official index over the coming months look likely, given that timelier measures point to further weakness," Dickens said.