London houses

House prices are an area many economists expected Brexit to have a big impact, but it may take several months to see the effect, one of the country's biggest mortgage lenders has said.

"Any impact from the vote may not be fully evident in July's figures, as there is a short lag between a buyer making the decision to purchase a property and applying for a mortgage," Nationwide's chief economist, Robert Gardner, said.

"In the near term, increased economic uncertainty may lead to weaker demand for homes. Leading indicators are consistent with softening ahead. Household confidence fell sharply in the wake of the referendum result, especially attitudes towards making major purchases, which in the past has correlated with mortgage activity, though less closely in recent years.

"How the labour market evolves will be crucial in determining the demand for homes in the quarters ahead."

House prices rose 0.5% between June and July, with a 5.2% increase compared with July last year.

It means that average house price is now £205,715, based on Nationwide's own lending data.

Earlier this month, Halifax said the growth of house prices eased to a 12 month low of in June. Following the Brexit vote, Barratt warned that it could slow house building and would review its current commitments to build on land across the UK.