House price growth was flat in June, with no growth compared to a dip of 0.3% in May, the latest Halifax house price index shows.
The average property price is now £296,665 compared to £296,782 last month, while the annual rate of growth has edged down to 2.5% from 2.6 in May.
Northern Ireland once again recorded the fastest pace of annual property price inflation in the UK, up by 9.6% over the past year.
Scotland recorded the next strongest annual house price growth in June, increasing by 4.9% with average prices now at £214,891.
Property prices in Wales were up 3.9%, to an average of £229,622.
Among English regions the North West has the highest rate of property price inflation, up 4.4% over the last year to £241,938.
The South West and London continue to see more subdued growth, with prices rising by just 0.5% and 0.6% respectively. However, the capital remains by far the most expensive part of the UK, with the average home now priced at £540,048.
Amanda Bryden, head of mortgages at Halifax, said: “The UK housing market remained steady in June, with the average property price effectively unchanged over the month, following a slight drop of -0.3% in May. At £296,665, the average house price is still around 2.5% higher than this time last year.
“The market’s resilience continues to stand out and, after a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have both picked up, with more buyers returning to the market. That’s being helped by a few key factors: wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead.
“Lenders have also responded to new regulatory guidance by taking a more flexible approach to affordability assessments. Over the last two months, we’ve already helped an additional 3,000 buyers – including more than 1,000 first-time buyers – access a mortgage they wouldn’t have qualified for before.
“Of course, challenges remain. Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. The economic backdrop also remains uncertain; while inflation has eased, it’s still above target, and there are signs the job market may be softening.
“But with markets pricing in two more rate cuts from the Bank of England by year end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year.”
Jason Tebb, president of OnTheMarket, commented: “Although buyers brought forward purchases in order to take advantage of the stamp duty concession, since then the housing market has demonstrated remarkable resilience, shaking off external economic concerns amid evidence of plenty of activity.
"Recent base rate cuts have been fundamental in boosting confidence and activity. Further rate reductions from the Bank of England will provide much-needed stimulus for the market and boost buyer and seller confidence as the year progresses.
"As property prices remain relatively steady, affordability continues to impact what buyers are able or willing to pay. Relaxing of criteria by lenders following recent guidance from the Bank may enable borrowers to take on bigger mortgages but evidence suggests they continue to remain sensitive on price.”
Jonathan Handford, managing director at Fine & Country, added: "The latest Halifax data reinforces what we’re seeing on the ground – a property market that is proving impressively resilient in the face of continued economic uncertainty.
“House prices were effectively flat in June, but this stability is a story in itself. Despite changes to the stamp duty threshold, buyers are returning with the intention of escaping the expensive rental market.
“What’s particularly encouraging is the rebound in first-time buyer activity, now back to pre-stamp duty change levels. Combined with stabilising interest rates and stronger wage growth, this is creating a more predictable and navigable market.
“Market conditions are improving, and this is pushing more sellers to decide that now is the time to sell, especially given that the summer months tend to be some of the busiest.
“An abundant supply of new homes for sale will give buyers the upper hand and keep prices competitive, especially in the south, where prices are higher and require more wriggle room from sellers.
“Looking ahead, expectations of further base rate cuts and easing inflationary pressures should provide additional support and reignite some growth. A market that is steady, more affordable, and gradually building confidence will surely help build momentum that benefits both buyers and sellers alike.”
