House prices drop for third month in a row, says Halifax

House prices have fallen for the third month in a row, according to the Halifax as mortgage rates for millions continue to climb.

The High Street lender said prices in June fell by 0.1% and were indicative of a cooling market.

The typical UK property now costs £285,932, against a peak last August of £293,992.

The Halifax said southern England had witnessed the most downward pressure on property prices.

The bank said house prices fell by 2.6% compared with a year earlier - the biggest annual fall for 12 years, compared with an annual fall of 1.1% in May, citing higher interest rates as a backdrop for the drop.

Adam Smith, founder of Alfa Mortgages predicted the strain being put on people's finances would "almost certainly send prices lower" during the months ahead.

"Inflation is proving extremely stubborn and the base rate is now expected to peak far higher than we thought a couple of months ago. However, the housing market could still experience a correction rather than a crash during the next 12 months due to the lack of supply and strength of the jobs market," he said.

Last month the Nationwide said UK house prices had fallen at their fastest annual pace for nearly 14 years.

The building society said prices in the year to May dropped by 3.4%, the biggest decline since July 2009.