While addressing Nationwide’s figures, Martin Beck, a senior economic advisor for EY’s ITEM Club, emphasised the impact of the stamp duty holiday in lowering house prices.
Mr Beck said: “The tapering of the stamp duty holiday on June 30 may have played a role in pushing down prices.
“The stamp duty concession had brought demand for properties forward, as potential buyers sought to benefit from a lower tax bill. Higher stamp duty payments since the start of July would be expected to weigh on demand and prices.
“But the stamp duty holiday has not been the only factor supporting house prices. Government support to household incomes and ultra-low mortgage rates have also played a role, factors which will persist at least in the short term.”
He added: “And the pandemic has had potentially long-lasting effects on property preferences, not least raising demand for larger homes in a world of more home working.