UK house prices rose by 7.6% on an annual basis this July, shows the latest index from Halifax.

This compares to annual growth of 8.8% in June and 9.6% in May, meaning that price growth has slowed down for the second month in a row.

On a monthly basis, prices rose 0.4% in July. This leaves the average house price in the UK at £261,221.

Additionally, Halifax points out that, at 13.8% over the last 12 months, Wales saw its strongest average house price growth since March 2005.

This cooling of prices on a relative basis was expected, says Halifax manging director Russell Galley, “given the strength of price inflation seen last summer, as the market began its recovery from the first lockdown, and with activity supported by the start of the stamp duty holiday.”

He believes that the housing market with “remain solid” over the next few months thanks to limited housing stock and low borrowing costs, with annual growth slowing  “but remaining well into positive territory by the end of the year.”

Many in the industry agree. For example, delivery services company Shift chief executive Jacob Corlett says: “Removals volumes over the year to the end of July were up 78% compared to the previous year.

“Even though phase one of the stamp duty holiday is now over, we’re still seeing a high level of removals activity as people seek to move away from towns and cities.

“Based on the high numbers of bookings we have for August and September already, there are still a huge number of completions in the pipeline.

“Home removals may cool down towards the end of the year but for now there has never been as much furniture travelling the UK’s roads.”

And James Pendleton property expert Lucy Pendleton comments: “Anyone who believes the market is going to take a tumble just because the stamp duty holiday has largely ended is writing their own epitaph.

“A softer annual growth rate is simply a symptom of the pressure coming off buyers a little. There’s no longer a reason to compromise on price for the sake of speed. Whereas, before, they had minutes to make a decision, they now have the luxury of a few days in many cases to make up their minds. Demand is still strong and there remains a shortage of stock right across the country.

“The reality is that no one we’re dealing with is even mentioning the stamp duty holiday. It’s a distant memory, and many of those who realised they weren’t going to make the June deadline and stepped away, have returned, determined to make their move happen.

She adds: “Meanwhile, the phenomenon of escaping to the country seems to have burnt itself out. Those who were going to go, have gone. Everyone who remains belongs in the category of loving the idea but going sour on the expense and disruption involved. It’s very much like when you return from holiday with plans to buy a holiday home. You keep the dream alive for a couple of weeks and then real life takes over and it’s forgotten. It doesn’t help that you can now pay as much in Padstow as Putney.”

Outside of London, The Mortgage Girl managing director Samantha Bickford says: “There are certain developments in the mortgage market at present that could put house prices under pressure. For example, a lot of small business owners who took out a government-backed loan are starting to find that getting a mortgage is becoming more difficult.

“Lender criteria increasingly include restrictions on those who have had a coronavirus-related grant, business interruption loan or bounce back loan.

“Some lenders are even requiring the self-employed to have their businesses back to the same position they were pre-Covid. This is understandably proving difficult for many small businesses to achieve.”

Meanwhile, Glenhawk chief executive Guy Harrington comments: “Despite flickering, and frankly welcome signs, that the fuel igniting the market may be running low, house prices continue to demonstrate a complete disconnect from economic reality.

“Only once the pandemic fallout picture becomes clear, with government stimulus fully withdrawn, and people start returning to the office en masse, will the read across to the housing market become meaningful. 2022 still looks more likely to see a correction of sorts than not.”