House prices have dropped at their fastest rate in 12 years, according to the Halifax. The High Street lender said in early July that the annual fall of 2.6% was equal to around £7,500 being wiped off the average price of a home in the UK, which is the sharpest fall since 2011.

Prices for June fell for the third consecutive month, dipping 0.1%, the data showed, as the market continues to cool. The average price of a residential property in the UK now stands at £285,932.

Halifax’s director of mortgages Kim Kinnaird said: “With very little movement in house prices over recent months, this rate of decline largely reflects the impact of historically high house prices last summer supported by the temporary stamp duty cut.”

Chris Druce, senior research analyst at Knight Frank, said of the Halifax data: “The fear factor over just how high the Bank of England will push the bank rate to tame inflation continues to grip the UK property market. While deals continue to be struck, buyers remain nervous and extremely price sensitive. This won’t change materially until we have surety about how high borrowing costs will go.”