Average UK property prices declined in June for the first time in 2021 as the end of the stamp duty holiday neared.

House prices fell 0.5% in June, according to figures from Halifax, a reduction of £1,284 to an average price of £260,358.

Annual house price inflation edged down to 8.8% last month, compared to May’s reading of 9.6%.

Whereas in Greater London, house price inflation stands at 2.9% year on year, City AM reports, the slowest price gains across the country.

However, according to Halifax managing director Russell Galley: “It is important to put such a moderate decrease in context, with average prices still more than £21,000 higher than this time last year, following a broadly unprecedented period of gains.”

Chancellor Rishi Sunak’s stamp duty holiday on properties worth up to £500,000 ended last week, with buyers attempting to beat the deadline with completions before the end of the month.

Currently, buyers will avoid stamp duty on properties worth up to £250,000 until the end of September.

Graham Taylor, mortgage broker Hudson Rose managing director, said: “June was a mad dash to get deals over the line rather than a heavy influx of new applicants.

“While buoyant, it was by no means April or May. Mortgage rates remain ridiculously low and we have also seen lender criteria relax in some areas, which has made it easier for some borrowers to access funds.”

Shaw Financial Services founder Lewis Shaw added: “Now that we have the second level of the stamp duty holiday with the nil rate band up to £250,000 until 30th September, I’m expecting things to get a bit more back to normal.

“The market is experiencing an acute housing stock drought and with thousands of first-time buyers feeling incredibly thirsty, there’s simply too much demand and not enough supply for the market to pop.”