Monthly house price growth in the UK saw no change in June, after dropping by 0.3% in May, Halifax has revealed.

The bank’s latest house price index report found that the average house price in the UK stood at £296,665 in June, increasing by 2.5% annually.

This compared to an increase of 2.6% in May.

Head of mortgages at Halifax, Amanda Bryden, said the market’s resilience "continues to stand out", with mortgage approvals and property transactions both picking up following a brief slowdown after the stamp duty changes.

She added: "Lenders have also responded to new regulatory guidance by taking a more flexible approach to affordability assessments. Over the last two months, we’ve already helped an additional 3,000 buyers – including more than 1,000 first-time buyers – access a mortgage they wouldn’t have qualified for before.

"Of course, challenges remain. Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. The economic backdrop also remains uncertain; while inflation has eased, it’s still above target, and there are signs the jobs market may be softening."

Once again, Northern Ireland was the country with the fastest pace of annual property price inflation in the UK, increasing by 9.6% year-on-year to £212,189.

Average house prices in Scotland (4.9%) and Wales (3.9%) also stood at £214,891 and £229,622.

The North West of England recorded the highest rate of property price inflation in this period, increasing by 4.4% year-on-year to £241,938.

However, Halifax added that London and the South West continued to see “more subdued growth”, with prices increasing by 0.5% and 0.6% respectively.

Despite this, London remained the most expensive part of the UK to buy a property, with the average house price standing at £540,048 in June.

Head of personal finance at Hargreaves Lansdown, Sarah Coles, said that there may not be a "spectacular late summer bloom" in house prices, as tax speculation begins to ramp up.

She concluded: "A major problem is that homes have become so expensive that it’s pushing affordability to the limit. And while mortgage rates have fallen, they’re not dropping particularly fast and remain much higher than we have been used to in the previous few years. It’s one reason why property sales are stronger in parts of the country where prices tend to be lower.

"Lenders have reacted to higher house prices by offering more flexibility over how much people can borrow. However, if you’re considering stretching your finances to buy a new home, at a time when prices are so sluggish, it’s vital not to push yourself to the brink and end up being forced to sell at a time when prices may not have risen enough to cover your costs.

"It means that anyone considering buying a home should think carefully about affordability and for first time buyers the size of the deposit is key."

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