The firm’s housing survey found that improved confidence in the market and a 2.4% increase in housing availability had slowed the rate of growth to 0.3% in the month.
New buyer registrations have also slowed in the heat of the summer with demand rising 1% in July, well down on the 2.5% increase recorded in May.
Across the two nations 29% of postcode districts saw house price increases while the average amount of time a property spends on the market shrank to 8.2 weeks.
In London this figure fell to 3.8 weeks with the average sale price of a home in the capital reaching 96.3% of the asking price, the highest in the country.
Richard Donnell, director of research at Hometrack, said that he anticipated a further slowdown in the market over the rest of the summer before demand increases again in the autumn months.
“Looking ahead we expect demand to continue to slow over the rest of the summer as seasonal factors play their part,” he said.
“The supply of homes for sale is also likely to expand further as vendors look to benefit from improving market sentiment and expectations of a renewed pick-up in demand in the autumn.
“However we do not expect growth in supply to be sufficient to erode the scarcity of homes for sale. This is likely to remain an important feature of the market in the second half of the year. For the new supply that comes to the market, the risk is that vendors look to push asking prices too far ahead of demand which will result in lower sales volumes later in the year.”
