Conveyancing comparison website Reallymoving analysed the quotes it receives alongside data from Land Registry, and predicted September will record a -0.1 per cent decline in average house prices.
Before this happens, house prices in England and Wales will rise in July, with a 3.8 per cent month-on-month increase. This is based on deals agreed in June which missed the initial stamp duty holiday deadline.
Prices will then decline to 0.4 per cent growth in August.
Annual growth is also set to fall to 6.3 per cent in September, ending the run of double-digit price hikes.
Buyer demand will also wind down as the website recorded a decline in the volume of conveyancing quotes, which decreased by 13 per cent and 18 per cent in May and June respectively.
Rob Houghton, CEO of Reallymoving, said: “A slowdown in the remarkable rate of growth we’ve seen over the last few months was inevitable and looking ahead over the next three months, the data indicates that the market is softening which will be reflected in completed sales data heading into the autumn.
“With the influence of the stamp duty holiday now largely expired alongside early signs that buyer demand is returning to more normal levels, we can expect prices to follow suit and return to a more stable trajectory.”
“Despite this period of readjustment, we believe the market will continue to perform well over the longer term.
“There will be a contingent of buyers who realised pretty quickly that rising prices were wiping out any tax savings and decided to hold off until the market cooled, who, along with first-time buyers who largely didn’t benefit from the stamp duty saving, may decide to make their move later this year,” he added.
