The latest Nationwide House Price Index revealed today (27 June) the UK annual house price growth softened to 2 per cent.
However, prices were up 0.5 per cent during the month, after taking account of seasonal factors.
Robert Gardner, Nationwide's chief economist, said: “Annual house price growth fell to its slowest pace for five years in June. However, at 2 per cent this was only modestly below the 2.4 per cent recorded the previous month.
“There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.
“Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates.
“Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low.
“Overall, we continue to expect house prices to rise by around 1 per cent over the course of 2018.”
London was the weakest performing region in Q2, with prices down 1.9 per cent year-on-year.
The East Midlands was the strongest performing region in England, and also the UK, with prices up 4.4 per cent year-on-year. Scotland was the only region to see a notable pickup in annual price growth this quarter to 3.1 per cent. Wales saw a softening in price growth to 4 per cent, though it was the best performing home nation.
Northern Ireland saw annual price growth of 2.1 per cent, similar to the UK average, while England saw the weakest growth, with prices up 1.3 per cent year-on-year.