UK annual house price growth softened to 2% in June, after reaching an annual growth rate of 2.4% in May, according the latest figures from the Nationwide House Price Index.

However, despite the annual price growth slowing, when taking into consideration seasonal factors, property prices grew by 0.5% during the month, significantly higher than the 0.2% monthly change reported in May.

Commenting on the figures, Nationwide chief economist Robert Gardner said: “Annual house price growth fell to its slowest pace for five years in June. However, at 2% this was only modestly below the 2.4% recorded the previous month.

“Indeed, annual house price growth has been confined to a fairly narrow range of c2-3% over the past 12 months, suggesting little change in the balance between demand and supply in the market over that period.”

When taking a look at Q2 as a whole, once again, London was the only region to see a decline, experiencing modest year-on-year price falls in each of the last four quarters. Prices in the capital were down 1.9% year-on-year in Q2.

However, while house prices in London have seen a decline, they are still more than 50% higher than their 2007 peak, compared to 15% across the rest of the UK.

In contrast, the East Midlands was the strongest performing region in England, and the UK, with prices up 4.4% year-on-year. The index revealed that Scotland was the only region to see a notable pickup in annual price growth this quarter, growing to 3.1%, while Wales experienced a softening in price growth to 4%, despite being the best performing home nation.

Trussle founder and CEO Ishaan Malhi said: “First time buyers will welcome the slowing house price growth. Unfortunately, house prices are continuing to rise more quickly than wages. With a first-time buyer deposit costing just under two years’ of average earnings, first-time buyers face a tough journey to home ownership.

“There are steps that can help buyers get on the property ladder. First of all, have a clear savings plan and put aside money as early as possible. It’s worth considering homes in more than one location to find somewhere that’s affordable for your budget. When you’re in a position to secure a mortgage, using a free online mortgage broker can help to avoid unnecessary costs, saving as much as £500 on broker fees and £390 a month in mortgage repayments.”

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