According to the Nationwide house price index, all regions saw positive annual house price growth.
However, the monthly change was flat at 0%.
Ian Futcher, financial planner at Quilter, said: “Confidence remains fragile and, after a lengthy period of fluctuating mortgage rates, households are understandably reluctant to make a move until there is greater certainty over borrowing costs and the wider economic outlook.”
Mark Harris, chief executive of SPF Private Clients, added: “Flat monthly house prices suggest those needs-based buyers who are transacting are not willing to pay over-the-odds for a property but are taking advantage of it being a buyer’s market and negotiating.”
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Annual price rises across all UK regions
Northern Ireland saw the largest increase of 8.6% to £226,699, eclipsing the rest of the UK.
The price of a typical home in Northern Ireland is approximately 80% of the average UK price, up from 70% in Q1 2024.
The mortgage payment on a first-time buyer property in Northern Ireland is equivalent to 31% of an average earner’s take-home pay, compared to the UK average of 33%.
All other regions saw growth between 0 and 4%. The North and the North West continue to see high price rises, recorded at 3.9% apiece to £173,756 and £231,415 respectively, outperforming other English regions.
Across Northern England, average prices combined were up by 3.1% year-on-year.
The outer South East region saw a modest growth of 0.1% year-on-year.
Average house price growth across Southern England was 0.7% to £341,175. London saw the strongest annual price rise of 1.6% to £540,903.
England saw an overall annual increase in house prices of 1.5% to £315,208, up from 0.9% in Q1.
Robert Gardner, chief economist at Nationwide, said: “It is not surprising that the market has softened a little in recent months, given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates.
“Indeed, consumer confidence and measures of housing sentiment have weakened, and mortgage approvals fell noticeably in May.”
He also said: “In recent weeks, a shift in market expectations for the future path of Bank Rate has helped to bring down the market interest rates which underpin fixed-rate mortgage pricing.
“If maintained, these trends will help to restore household confidence and ease affordability constraints, paving the way for a recovery in housing market activity in the coming quarters, providing that domestic political uncertainty does not adversely impact sentiment.”
