Annual house price growth slowed to 1.7% in the 12 months to June, the Office for National Statistics (ONS) has revealed, down from 1.8% in the year to May.

According to the latest UK House Price Index published by the ONS, the average house price was £288,000 in June, a figure £5,000 below the recent peak in November 2022, but £5,000 higher than it was a year earlier.

Average house prices increased over the year to June, to £306,000 in England (1.9%), £213,000 in Wales (0.6%) and £174,000 in Northern Ireland (2.7%), while average Scotland house prices (£189,000) remained little changed (0.0%).

The North East was the English region with the highest annual percentage change in the 12 months to June 2023 (4.7%), while London saw the lowest and was actually in negative territory, at -0.6%.

Garrington Property Finders CEO, Jonathan Hopper, commented that the property market is “going through a correction rather than a crunch”.

“While the slowdown in transactions and widespread falls in prices are undeniable, they’re not universal,” Hopper said.

“Constrained supply is helping prices fall gently, though for many would-be buyers the benefits are largely being cancelled out by the increased cost of mortgages and the reduction in the amount of money they can borrow.

“As a result, buyers with limited savings who are most reliant on credit are having to pare their budget right back, either by looking for a smaller home or by focusing on more affordable postcodes. Meanwhile those who’ve been on the property ladder for longer, and have additional cash savings, are winning on one hand as losing on the other as prices fall.

“Nevertheless, this is unequivocally a buyer’s market and the price correction is likely to continue as cautious buyers price risk and higher borrowing costs into what they’re prepared to pay for a property.”

Proposition director at PRIMIS, Vikki Jefferies, added: “In a rate environment which is constantly evolving, brokers should work with buyers and those who are remortgaging to help them navigate the wide range of products on offer.

“Likewise, as lenders constantly evolve to adapt their offerings to meet the needs of consumers, advisers should seek to highlight the flexibility of products on the market – particularly those which enable customers to switch onto more favourable rates if they decline further. Such scenarios show the power of professional advice, as many customers may not be aware of cost-saving solutions which could be available to them.”

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