Friday's house price index out from Halifax showed that although monthly U.K. house price growth dropped by 1.0 percent during July, on an annual basis, the market recorded an 8.4 percent rise. But according to Martin Ellis, Halifax's housing economist, there are some signs of prices relenting.
"Housing demand has been firm as a result of very low mortgage rates, rising real incomes and high employment. At the same time, supply has been extremely low, adding to upward pressure on prices. There are, however, signs that the underlying pace of price growth has been slowing in recent months," he told CNBC.
He also cautioned against reading too much into monthly numbers, telling CNBC: "The monthly figures can be erratic and it is important not to read too much into July's fall."
However, a report out from estate agent Knight Frank this week focused solely on prime central London property which showed a more definite trend with an annual slide in prices of 1.5 percent.