House prices have gone down for the first time this year, according to a new report.

A study by Rightmove has revealed a fall of 0.4 per cent, which is equivalent to an average reduction of £1,172.

This is the first price fall in June since 2009.

Rightmove director and housing market analyst Miles Shipside said: "It now seems certain that we will have continued political uncertainty, which the housing market traditionally dislikes, and with the first fall in June prices for eight years there is no doubt that the lack of stability is a factor.

"The price of property coming to the market had increased in June in every year since 2009, so buyer confidence has clearly been affected by inflation outstripping their pay packets and current political events."

Because of these underlying factors, the annual rate of housing price increase has slowed to 1.8 per cent, which is the lowest since April 2013.

The Rightmove House Price Index said that the national figures conceal large differences between different local markets and property sectors which seem to be reacting in varying reactions to the country's overall air of uncertainty.

The two-bedroom typical first-time buyer is now the fastest growing sector and has seen newly-listed prices surge by 3.5 per cent month-on-month and 5.5 per cent year-on-year.

Mr Shipside said: "Those at the traditional starter level are brushing aside uncertainty, with demand being fuelled by the on-going desire for home-ownership, government assistance, and mortgage repayments often being cheaper than rent for a similar property.

"Markets traditionally slow in the second half of the year, and with a slowing in the pace of asking price rises and the forthcoming months of political and economic confusion, the usual slower market in the second half of the year seems to be one of the few certainties in 2017.

"Having said that, the historic under-supply of the right property at the right price and ongoing strong housing demand are evidenced by buyer enquiries to agents picking up to a degree after the surprise election result.

"They were three per cent higher on the Monday after the election than the Monday before, showing that people are getting on with addressing their housing needs."

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