The average house price, according to SmartNewHomes.com, fell 1.6 per cent in July from £258,581 to £254,374 and the property website has forecast that the market will remain slow throughout the remaining Summer months.
However, the Autumn is expected to provide renewed impetus to the housing market and the price of homes will increase once again.
David Bexon, managing director of SmartNewHomes.com said: “The recent fall in the price of a new home was inevitable, with the Summer months always proving quieter for the industry. The hot weather experienced this July only intensified the situation with buyers putting off viewing properties in favour of enjoying the sunshine.
“However, the fall in buying activity offers no cause for concern and I am confident that we will see a return of the buoyant housing market before the Autumn.”
The biggest fall in prices was experienced by apartments, where prices on average fell by 2.9 per cent in June and July, while the price of semi-detached homes continued to increase, rising by 12.2 per cent in a year.
SmartNewHomes.com blamed the lack of supply of new family homes and the promiscuity of flats and apartments for the decline.
Bexon added: “We are pleased to see a slight fall in the number of apartments making up the new housing mix in July, down 2 per cent over the last month – an indication that the government may finally be allowing house builders to respond to consumer demand.”
Sole broker, Tony Catt, said: “In Brighton we have run into a bit of a problem, as we are surrounded by greenbelt so you can’t build outwards where proper family homes would be. In the centre, there are very expensive apartments being built as part of the regeneration of the city but the building of family homes has been left behind.”
