House price growth ground to a halt in July, according to Lloyds Bank. However, the national picture hides significant regional moves.
Prices in the South East have fallen at the fastest pace in England over the past year, down by 2pc to an average of £381,146.
By contrast, average prices in the North East were up 2.8pc to £182,488 and the North West up 2.1pc to £247,836.
‘Cautious on the pound’
Beyond potential council tax reforms, sterling could also be affected if John Healey, the new Chancellor, ramps up borrowing in the Budget on Oct 28.
He is thought to want to borrow more to fund spending on infrastructure by finding “flexibilities” within the current fiscal rules. Treasury officials are “alert” to the risk that this could unnerve investors, Bloomberg reported on Sunday.
Mr Bell said: “With a weakening private sector labour market, downward pressure on house prices, particularly in the South, and concerns that the UK’s fiscal position could potentially deteriorate under the new Government, we are cautious on the pound.”
A Treasury spokesman said: “The Chancellor is fully focused on his priorities, which will boost business, help with the cost of living and support people in every postcode.
“As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”
