The price rise is a marked slowdown from 2.6% in April and 0.7% in May.
Asking prices have already started to fall, according to the property index, following a 22% increase in sellers after the abolition of Home Information Packs (HIPs).
A stampede of landlords looking for a quick sale to avoid the rise in Capital Gains Tax (CGT) expected to be announced in tomorrow’s budget has also hit the market, said Rightmove.
New property listings are up 56% nationally compared to June 2009, with London seeing the most dramatic rise in fresh stock at 88%, according to the index.
Miles Shipside, commercial director of Rightmove, said: “They say that troubles come in threes. The continuing mortgage famine has now been joined by a surge in sellers following the abolition of HIPs and investor reticence driven by rumours of CGT increases. Together, these factors are likely to put an end to this year’s recovery in house prices.”
He said after watching average asking prices rise for ten out of the last 14 months, and a 7.4% increase in the first six months of 2010, he forecast prices would fall during the second half of 2010 to give an overall price standstill for the year.”
