For sale sign

The growth of house prices is showing definite signs of slowing down following the vote to leave the European Union, the UK's biggest mortgage lender has said.

Halifax said prices actually fell 1% between June and July, but in fact grew 8.4% compared with July last year. But that itself was a fall on the annual growth seen in June.

In the three months to the end of July, prices were up 1.6%, with June's growth offset by the drop in July. Monthly figures tend to be quite volatile, which is why economists tend to focus on quarterly and annual data.

But the mortgage lender stressed that it was still far too early to accurately assess the impact of Brexit on the UK's housing market.

On Thursday, the Bank of England cut interest rates from 0.5% to the new record low of 0.25%, meaning mortgage repayments are likely to fall by £22 a month for the average household. But the Bank also said that it expects mortgages to be more readily available and house prices to fall as a result of the decision to cut rates, which itself was prompted by a wave of worrying economic data for July in the wake of the EU referendum.

Earlier this week, figures from think tank, the Resolution Foundation, showed that home ownership in major English cities fell dramatically between 2003 and 2016.