UK house price growth has slowed to the lowest level since August 2013, according to the latest data from the Office for National Statistics (ONS).
The figures reveal that the average price of a home rose 0.4% from May to June, taking the annual rate of growth to 3%, down from 3.5% - the lowest annual growth rate since August 2013.
The average property price in the UK now stands at £228,384.
Property prices in London have fallen at their fastest pace since 2009 as the capital’s property market continues to cool, ONS figures reveal.
There was a 0.7% decline in property prices in the capital in the year to June, the lowest annual growth rate since September 2009 when they fell 3.2%.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “Prices in the capital are more sensitive to changes in mortgage rates than elsewhere, because loan-to-income ratios are extremely high.
“The reduction in jobseekers from the EU, due to Brexit, also has hit demand in the capital.”
Nevertheless, London continued to be the region with the highest average house price, at £477,000.”
As the UK housing market continues to let off steam in the face of fragile consumer confidence, the market “is struggling to gain momentum,” according to John Goodall, CEO and co-founder of buy-to-let specialist Landbay.
He said: “For most the cost of living remains high, compounded by flat wage growth and a period of high inflation.
“While the Bank of England’s recent interest rate rise adds further pressure to household finances, we don’t expect the cost of borrowing to alter significantly.”
Owen Woodley at Post Office Money agrees that another consecutive month of slowing house price growth indicates that the national market is cooling down.
Woodley commented: “First-time buyers looking to get a good deal on their first home will welcome this news [of slowing house prices] but the recent interest rate rise will also have given many cause to really question what they can afford in the longer term.
“Affordability should always be the first consideration when making a mortgage application.”