Property costs had been flat in June after falling by 0.3% in Could, Halifax’s home worth index has revealed.
The long-term development has nonetheless been a worth uplift nonetheless, as the typical worth stands at £296,665, following a 2.5% improve year-on-year.
Sarah Coles, head of non-public finance, Hargreaves Lansdown, stated: “A serious downside is that houses have develop into so costly that it’s pushing affordability to the restrict.
“And whereas mortgage charges have fallen, they’re not dropping significantly quick and stay a lot larger than we have now been used to in the last few years.
“It’s one motive why property gross sales are stronger in elements of the nation the place costs are typically decrease.
“Lenders have reacted to larger home costs by providing extra flexibility over how a lot folks can borrow.
“Nevertheless, should you’re contemplating stretching your funds to purchase a brand new dwelling, at a time when costs are so sluggish, it’s very important to not push your self to the brink and find yourself being compelled to promote at a time when costs might not have risen sufficient to cowl your prices.”
Whereas home worth progress is sluggish, mortgage approvals and property transactions picked up, fuelled by rising wages and progressively falling rates of interest.
Amanda Bryden, head of mortgages, Halifax, stated: “In fact, challenges stay. Affordability remains to be stretched, significantly for these coming to the top of fixed-rate offers.
“The financial backdrop additionally stays unsure; whereas inflation has eased, it’s nonetheless above goal, and there are indicators the roles market could also be softening.
“However with markets pricing in two extra price cuts from the Financial institution of England by yr finish, and the typical price on newly drawn mortgages now at its lowest since 2023, we proceed to anticipate modest home worth progress within the second half of the yr.”
Property costs in Northern Eire are up 9.6% in a yr, Scotland 4.9% and the North West of England, by 4.4%.
Nicholas Finn, managing director of Garrington Property Finders, stated: “In lots of areas the variety of houses coming onto the market far exceeds the variety of potential patrons.
“That is conserving worth rises to a minimal, and even pushing costs down. In some areas the glut of provide is so acute that property brokers are refusing to checklist houses the place they really feel the proprietor is asking for an unrealistic worth.
“The imbalance is biggest in southern England, however is not simply restricted to the capital and its commuter belt.
“Halifax’s information exhibits that the slowest price of worth progress is now within the South West – a mirrored image of the big numbers of second houses and vacation let properties being offered by their disenchanted homeowners.
“The web impact has been to show the south right into a purchaser’s market – through which patrons can ask for, and with the appropriate vendor, get a big discount in asking worth.”
