Annual house price inflation in the UK stayed flat at 2.7% in the year to June, according to the latest UK House Price Index from the Land Registry.

This figure was little changed from the revised estimate of 2.7% in the 12 months to May.

The Land Registry data showing little movement was in line with the most recent Bank of England Money and Credit figures that showed mortgage approvals for house purchases, an indicator of future borrowing, remained broadly stable at 60,000 in June.

It means the average UK house price stood at £288,000 in June, a level around £8,000 higher than 12 months ago.

Average house prices in the year to June rose to £305,000 in England (2.4%), to £216,000 in Wales (1.8%) to £192,000 in Scotland (4.3%). In Northern Ireland, the average house price increased in the year to second quarter to £185,000 (6.4%).

Financial planner at Quilter, Holly Tomlinson, said the latest figures indicate the UK property market is “gradually picking up steam”, despite facing challenging economic conditions.

She commented: “The recent decision by the Bank of England (BoE) to cut its base rate from 5.25% to 5% is expected to further stimulate the market, although the immediate financial impact on homeowners, especially those with fixed rate mortgages, may be limited.

“However, the psychological effect of this rate cut cannot be understated. It boosts buyer and seller confidence, potentially encouraging more people to enter the market. This renewed confidence could lead to a busier-than-expected autumn, as more buyers feel ready to commit and sellers decide that now is the right time to list their properties.”

Head of product at MPowered Mortgages, Peter Stimson, added that there had been a “definite increase in demand” for mortgages since the BoE cut its base rate.

“As swaps went south, so did mortgage rates, including our own, and that has translated into increased appetite from borrowers,” Stimson said. “Affordability, ultimately, is the key issue for many borrowers and will remain so for some time to come.

“Though a base rate cut in September is now unlikely following inflation rising above target on Wednesday, if bank rate is reduced again before the year is out, that could further improve all-important affordability and drive transaction levels.”

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