Houses prices have come down to its lowest in eight years, proving that the market is officially cooling. The market fell 0.3 percent last month, leaving it up just 4 percent on the year, the slowest rate since 1995 compared with 5.7 percent in May. These figures, complied by JDP, also show that prices were increasing by nearly 22 percent a year earlier. Our analysis is that the average house price is £162,000 pounds for June.

Other property experts believe that house price inflation would decelerate through the rest of the year. The thought process behind this is that the market will need to adjust to lower levels of turnover and slower growth, after the five interest rate hikes in the past couple of years.

'The property market is likely to see a long period of subdued activity and low prices rather than undergo a precise correction', one of the experts mentioned. They also added that much will have to depend on how well the market and the economy hold up in the coming few months.

Most economists think that the Bank of England, (BOE) will cut interest rates from their current 4.75 percent in August in order to revive consumer demand. Alternatively a more protracted slow down is inevitable. Data from mortgage approvals in tandem with sales to stocks of properties ratio have all pointed toward a stabilisation in house prices going forward. If this is the case property inflation is expected to be stabilised around 5 percent.