House prices dropped unexpectedly last month, a closely watched survey showed, as Rachel Reeves considers plans to hit owners of expensive homes with capital gains tax in the upcoming Budget.
The price of an average home slipped by 0.1pc between July and August from £272,664 to £271,079, according to the Nationwide house price index.
Analysts had forecast prices to rise by 0.1pc, having climbed by a downwardly revised 0.5pc in July.
The annual rate of price growth also slowed down, with prices up 2.1pc compared to the same month last year, compared to 2.4pc in July.
The drop came after The Telegraph revealed the Chancellor was drawing up plans for a fresh raid on homeowners, including a mansion tax on property sales.
