Sarah Coles, head of personal finance at AJ Bell, said: “House prices held steady in June, which is an impressive result given the pressure the property market has been under.
“It’s still battling lower consumer confidence, which means fewer buyers and agreed sales, and lower approved mortgages in recent months. Prices are also eye-wateringly high, which has priced an awful lot of people out of the market.
“The North/South divide persists, with growth below two per cent in the South, and as low as 0.1 per cent in the outer South East.
“Meanwhile, growth remains above two per cent in the North – including 3.9 per cent in the North West and the North of England. It’s a strong sign that affordability is playing a significant role.
“Buyers in pricier parts of the country are less confident about stretching themselves to get into such an uncertain market.
“House prices overall are up just 2.2 per cent in a year. This is well behind general price inflation and wage inflation, which could help ease affordability pressures.
“The longer we see sluggish growth, the more people will start to feel mortgage payments are within reach and that a move onto or up the property market is more realistic.
“Meanwhile, the fact that the Iran peace deal was agreed halfway through June, which lowered inflation expectations and brought mortgage rates down, could offer some hope for the market in the months to come. Of course, any peace deal remains fragile, so nothing is guaranteed, but in a sluggish market, even a sliver of hope makes a big difference.”
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