The average price of a UK home dropped slightly last month and now sits at just under £199,000, according to Halifax. During the month of June growth of house prices hit 9.6%. The following month saw house growth fall to just under 8.0%. Halifax discovered the level in July to be at the weakest level since the end of last year.

The figures are limited to only one month, so many experts feel this is just a short glimpse into a market which is carrying strong fundamentals which indicate this fall in growth is only temporary.

Stephen Noakes with Halifax, commented on the latest data which has surfaced, saying: "Continuing economic recovery, earnings growth in excess of consumer price inflation and very low mortgage rates all underpin housing demand. Supply is highly restricted with the stock of homes available for sale falling further to new record lows.”

Noakes added: "This combination of well-supported demand and tight supply is likely to ensure that house price growth remains relatively strong in the near-term."

Although interest rates are expected to increase in the coming months, the most recent statements from the Bank of England suggest the base rate will not be pushed higher until the beginning months of next year.

Howard Archer, chief economist at IHS Global Insight, commented on the forecast for the short and long term, saying: "Our current forecast is for house prices to rise by six per cent over 2015. We currently see house prices rising by around five per cent in 2016.”

Archer added: "Latest data and survey evidence indicate overall that housing market activity is trending up."