Following the Brexit vote, opinions varied widely on the short term and long term forecast for house prices. The answer to that and many other questions are starting to come into focus. Last month saw the average UK house price slide more than £3,500. The cause of the decrease is being blamed on summer slowdown and the referendum which took place in June.

London took the biggest hit as the average house price month on month fell almost 3% to an average of £619,000. Over the last two months the number of days in which a sale takes place increased more in the capital city as well.

The year is shaping up to be a contrast in activity. During the first half of the year the UK housing market was on fire and could not be stopped. Then as the second quarter came to a close, the new tax kicked in for owners of second homes. This increased property buying during the month prior which had a negative effect on the month of the actual increase.

Miles Shipside of Rightmove commented on the latest data from the housing market, saying: “Many prospective buyers take a summer break from home-hunting and those who come to market at this quieter time of year tend to price more aggressively.”

Shipside added: “This summer is also affected by both Brexit uncertainty and the aftermath of the buy-to-let rush in March to beat the stamp duty deadline.

“Having waited for the referendum result, it now seems that some [buyers] are also waiting until the summer holidays are over before reviewing their course of action.”