House prices went into decline this month for the first time since February.
This is according to the latest Nationwide's monthly price index, which also reported falling house price inflation.
Inflation dipped from 8.7 per cent to 6.6 per cent.
Market activity dipped, with chief economist Martin Gahbauer noting that it remains well below pre-recession levels.
He commented that there were fewer buyers because of the tougher economic conditions, locking many out of the market.
"Many potential buyers still lack the confidence to purchase their first home or trade up when faced with uncertainty over future income and employment prospects.
"A combination of restrictive credit conditions and uncertainty about the future economic outlook continues to limit the pool of buyers to those with relatively large financial resources," Mr Gahbauer said.
However, the housing market expert pointed out that the figures of gross domestic product published last week had outstripped earlier forecasts, suggesting that the economy is on its way to recovery.
See Also: Property News (5994)
Date Published: 29 July 2010
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