The change in house price growth remained "relatively flat" month-on-month in June, with prices dropping by 0.2%, Halifax has revealed.

The bank’s house price index found that the average UK house price in June stood at £288,455, compared to £288,931 in May.

Annual house price growth saw a repeat of May, with the value increasing once again by 1.6% year-on-year.

Head of mortgages at Halifax, Amanda Bryden, said: "UK house prices stayed relatively flat for the third successive month in June, with the slight fall equivalent to less than £500 in cash terms.

"This continued stability in house prices – rising by just 0.4% so far this year – reflects a market that remains subdued, though overall activity has been recovering. For now it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices.

"Mortgage affordability is still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals. This issue is likely to be eased gradually, through a combination of lower interest rates, rising incomes, and more restrained growth in house prices. While in the short-term the housing market is delicately balanced and sensitive to the pace of change to base rate, based on our current expectations property prices are likely to rise modestly through the rest of this year and into 2025."

Northern Ireland recorded the strongest property price growth of any nation or region in the UK, with annual house prices increasing by 4% in June, after a jump of 3.3% in May. The average property price in the country is £192,457.

Scotland (1.6%) and Wales (2.7%) also saw increases in average house prices, now standing at £204,663 and £220,197 respectively.

In England, the North West (£231,351) was the best performing region, with prices increasing by 3.8% annually in June, while Eastern England (£328,747) was the only region in the UK to register a decline in house prices over the last year, recording an annual drop of 0.9% in June.

London continues to have the most expensive average property price in the UK, jumping by 0.9% annually to £536,306.

Personal finance analyst at Bestinvest, Alice Haine, added: "With Britons waking up to a new Labour Government today, many may wonder whether their landslide victory will inject some momentum into the UK property market. A stable political environment can potentially deliver a confidence boost to the housing market, particularly one that has struggled over the past year with high borrowing costs and a dearth of available and affordable stock.

"Interest rates have remained at a 16-year high of 5.25% for almost a year causing major affordability challenges for first-time buyers and those looking to move to larger homes.

"Labour will be keen to encourage more first-time buyers to get a foot on the UK’s housing ladder, something that has become a major challenge for many young, and not so young, buyers in recent years who have struggled to find affordable homes in many parts of the country."

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