Editor's note: This brief was summarised by The Property AI Newsroom from a report by Guardian Property. Read the original article for full details.

UK House Prices Flat for Second Month as Agents Signal Summer Slowdown

UK house prices remained largely unchanged in June, according to Nationwide, with the average price of a typical home edging down to £277,484 from £278,024 in May. Letting agents have warned of a quieter, price-sensitive summer as higher mortgage rates continue to affect buyer demand.

Nationwide reported that house price growth stalled for a second consecutive month in June. The lender’s data showed a 0.6% month-on-month fall in May, followed by a marginal decrease in June. Economists had forecast a small monthly rise for June, but this did not materialise.

Despite the recent stagnation, annual house price growth increased by 2.2% in June, up from 1.7% in May, according to Nationwide. The lender also reported that all UK regions saw an increase in annual house prices in the second quarter. Northern Ireland recorded the strongest growth, with average home prices up 8.6% year-on-year. Scotland and Wales saw a 3.5% increase, while London prices edged up by 1.6%.

Mortgage rates remain elevated compared to earlier in the year. On Tuesday, the average two-year and five-year fixed mortgage rates both stood at 5.53%, according to Moneyfacts. These rates are higher than those available before the onset of the war in Iran, which has contributed to increased interest rates and affected homebuyer demand.

The recent flatlining of house prices has impacted housebuilder shares, with Barratt Redrow, Persimmon, and Berkeley all seeing declines in early trading. Nationwide’s chief economist noted that easing oil prices and lower-than-expected UK inflation could influence future interest rate decisions by the Bank of England, potentially affecting mortgage pricing.

For letting agents and inventory clerks, the current market conditions suggest a steady but selective mood among buyers, with activity expected to be quieter over the summer. Agents anticipate that market activity may pick up again in the autumn as buyers gain more clarity on interest rates and geopolitical developments.