The average house price in England and Wales now stands at £360,630, a drop of 1.3% annually, e.surv has found.

The valuation provider’s house price index revealed that this price has fallen by 0.1% month-on-month.

e.surv said that although these figures bring a halt to the improving picture of recent months, there is "always considerable volatility in month-on-month movements".

Prices may still be nearly 5% off the previous reached in October 2022, but the firm said that "the most negative market conditions are now well and truly behind us", with the low point being in late 2023 and an upward trend evident since.

Director at e.surv, Richard Sexton, said: "Despite the monthly volatility, the overall market performance has remained relatively stable over the past quarter. This stability is noteworthy given the ongoing affordability challenges and uncertainties surrounding the July General Election.

"Moreover, the recent cut in official interest rates by the Bank of England, the first in four years, alongside the new Labour Government's emphasis on boosting housing supply, is expected to instil greater confidence and activity in the housing market. This impact is already evident as a number of mortgage lenders lower rates to below 4%. This trend is likely to make borrowing more affordable for potential homebuyers, further stimulating demand and supporting overall market growth in the second half of the year."

In terms of nations, England (0.3%) and Wales (0.5%) saw monthly rises in June, with average house prices standing at £373,252 and £238,745, respectively.

London remained the most expensive region to buy a property in England and Wales, with the average price increasing by 1.2% month-on-month, the best performing region in June, with the average price standing at £699,761.

Outside the capital, the North West was the best performer in June, with the average house price increasing by 0.7% to £191,515 in June.

The worst performers were the East of England (£391,903) and the South East (452,664), where house prices fell by 0.3% month-on-month.

Sexton added: "Regionally, the housing market has seen positive annual price movement across all parts of England and Wales. The North East and North West are leading with the highest year-on-year price increases, while the South West and Wales have also shown notable improvements.

"Looking ahead, wage growth and lower inflation are expected to make mortgage costs more affordable relative to incomes. On the supply side, the Government's commitment to mandatory building targets and an increased output goal of 370,000 homes per annum signals a clear direction towards enhancing housing supply, though this will take time to materialise."

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