U.K. house prices rose 0.4% month over month in July, after a 1.0% decline in June, mortgage lender Halifax said.
In annual terms, house prices rose by 2.1%, down from the 2.6% recorded in June and the lowest annual rate since April 2013. Annual growth has dropped from a high of 10.0% in March 2016.
Prices in the three months to July slipped 0.2%. It was the fourth month in a row of three-month declines, the first time this has happened since November 2012, Halifax said.
The average house prices was £219,266 in July, up from £218,390 the previous month.
A squeeze in consumer spending, the impact of stamp duty changes on property transactions along with affordability concerns appear to have contributed to weaker housing demand, Halifax Community Bank Managing Director Russell Galley said.
"However, a continued low mortgage rate environment, combined with an ongoing shortage of properties for sale, should help continue to support house prices over the coming months," Galley added.