UK house prices stayed flat in June, inching up by just 0.3 per cent compare to May to an average of £225,654, as the rate of growth slowed over the second quarter.
The latest Halifax house price index shows prices in June were 1.8 per cent higher than the same month last year, down from 1.9 per cent growth in May.
For the three months from April to June, prices were 0.7 per cent lower than in the second quarter of 2017.
Property experts said the “lacklustre” market was partly down to uncertainty around Brexit, as well as anticipation of an interest rate hike by the Bank of England.
Jonathan Samuels, CEO of lender Octane Capital, said: “For some time now, the UK's property market has lacked both energy and direction and June has delivered much of the same. The chances of a rate rise have just increased and that is likely to dampen activity levels further during July.
"While the jobs market may be strong and mortgage rates still highly competitive, many households continue to feel the pinch and remain wary of the potential fallout from Brexit.”
Mr Samuels added that a lack of properties on the market would stop prices from going into freefall, but for eager buyers there are “slim pickings at present”.
Jonathan Hopper, managing director of Garrington Property Finders, said an imminent rate hike could help the market pick up: “The fear that the cost of borrowing might rise sooner rather than later could give many would-be buyers the impetus they need to commit, and inject some extra vim to a market which has proved stoic if not universally solid in the face of months of Brexit uncertainty.”
Russell Galley, Halifax managing director, said: “Activity levels, like house price growth, have softened compared with the final months of last year. Mortgage approvals have been in the low range of 63,000 to 67,000 since the start of the year, whilst home sales have remained flat so far this year.
“This is in contrast to the continuing strength of the UK jobs market with job creation still strong and pressure on household finances easing as real income growth edges up.”
Mr Galley said that Halifax is predicting growth of 0 to 3 per cent for 201.
“We continue to see very positive factors of continuing low mortgage rates, great affordability levels and a robust labour market,” he added.
“The continuing shortage of properties for sale should also continue to support price growth.”
