The Nationwide Building Society has reported that annual house price growth fell to its slowest pace for five years in June.
However, at 2% this was only modestly below the 2.4% recorded the previous month.
Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth has been confined to a fairly narrow range of c2-3% over the past 12 months, suggesting little change in the balance between demand and supply in the market over that period.
“There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.
“Looking further ahead, much will depend on how broadereconomic conditions evolve, especially in the labour market, but also with respect to interest rates.
“Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low.
“Overall, we continue to expect house prices to rise by around 1% over the course of 2018.”
Jonathan Samuels, CEO of Octane Capital, added: “Prices may have nudged up slightly in June but the market overall is in marked slowdown mode. With Brexit on the horizon, households feeling the pinch and interest rate uncertainty lingering, a lot of prospective buyers are sitting tight.
“Nationally, we’re witnessing the revenge of the regions, with the East and West Midlands in especially barnstorming form. Wales also has a significant spring in its step.
“London is in a league of its own once again, but sadly, for homeowners in the capital, it’s the bottom league. The fact prices in the capital are still 50% higher than in 2007, compared to just 15% in the UK as a whole, shows the staggering heights the London market hit.
“While annual prices overall are edging down, they can only go so far given the fundamental lack of stock.
“Along with weak supply, the strength of the jobs market and continued low borrowing costs will continue to support the market and drive transactions.”