House prices up 0.1% in June as annual growth reaches 2%

New build homes averaged £381,000, up 3.1% annually. 

Resold properties averaged £288,000, up 4.1%.

Reaction:

Chris Storey, chief commercial officer at Atom bank: 

“Today’s ONS figures paint a picture of a cautious housing market, with annual house price growth continuing to slow. 

“Would-be buyers have seen the impact of global events on mortgage rates, and their own monthly outgoings, and so have been more wary about pursuing transactions. 

“Rightmove has just reported the biggest drop in August asking prices since 2018, while the number of homes available has hit a 12-year high. 

“Combined with research from Propertymark noting that homes are taking longer to sell, it seems clear that activity is being driven by only the most motivated parties.

“The path ahead remains uncertain, with news today of inflation accelerating sharply in July. 

“The Bank of England held base rate but has said it is ready to raise interest rates if the Iran conflict drags on, which will have an impact on buyer confidence. 

“And we are still waiting to see precisely what Andy Burnham’s vision for the housing market will be. 

“Until that picture becomes a bit clearer, the market will continue to be dominated by those who need to move, rather than those testing the waters. 

“As Andy Burnham approaches the one-month mark of his tenure as Prime Minister, the figures continue to portray a housing market that is resilient and determined. 

“His first weeks in office have been rife with transition yet the market has held its own throughout. 

“Specialist lenders continue to adapt their products to meet the evolving needs of borrowers in a market where more untraditional streams of income are becoming increasingly common.

“With the Autumn Budget now set for 28 October, there is already a great deal of interest in what the new Chancellor will set out and how the government wants to get the economy growing, support the housing market and build new homes. 

“As the first Budget for the new Chancellor, it will be an important opportunity to set the stall out and provide greater clarity on the direction of travel for the economy and housing market. 

“In the meantime, professional advice remains important, and speaking to a qualified mortgage adviser remains the clearest way to ensure borrowers are best placed to respond to any changes.”

Amy Reynolds, head of sales at Antony Roberts: 

“This picture of a subdued housing market is not surprising, yet it doesn’t tell the whole story. 

“Certainly, in our part of the world in Richmond, the market seems to be through the worst of the correction. 

“Prices aren’t rising rapidly, but they are stabilising, and the underlying level of applicant demand we have seen over the Summer gives me some cautious optimism for the Autumn.

“Applicant registrations have been higher than usual – we’ve seen a 52 per cent increase in applicants registering in Richmond year-on-year compared with a 1 per cent fall across London. 

“Lack of available stock is helping support prices, particularly given the continued demand for safe, green areas with excellent schools and transport links. 

“There are still challenges, with some buyers reducing their expectations (to avoid Mansion Tax) and some owners looking to downsize financially, which is less typical for the area.

“We may see some uncertainty ahead of the Budget, but perhaps less of a ‘wait and see’ mentality than previously. 

“There is still a strong underlying desire to move, and where the right property is available, buyers appear increasingly willing to get on with it rather than wait indefinitely for greater certainty.”

Nathan Emerson, CEO at Propertymark:

“The UK’s housing market is central to the country’s economic engine, so any fall in house prices can naturally create a sense of nervousness among sellers, especially when looking at the figures year on year. 

“While short-term fluctuations are a normal part of the property market, they can influence confidence and lead some homeowners to delay decisions until there is greater certainty about the direction of the market.

“It will, however, be a case of closely watching how matters progress over the coming months, as significant uncertainty remains, particularly when considering the wider global economy.

“Across all nations, housing remains a key political focus, and there are significant challenges still to overcome. 

“We recently witnessed Andy Burnham enter Downing Street, specifically highlighting housing as an issue that must remain at the heart of the UK Government’s attention moving forward.”

Phil Jeynes, head of individual protection at MetLife UK: 

“First-time buyers across the UK face an increasingly large financial burden getting onto the property ladder, with low-deposit mortgage deals across the market reflecting the size of debt these borrowers are taking on. 

“When mortgage payments make up such a high proportion of household income, many borrowers call into question the value of products like protection, choosing to go without cover.

“Today’s ONS House Price Index data shows prices are rising fastest in North West, MetLife UK research found 40% of mortgage holders in this area have no protection products in place to ensure their payments are covered if they are unable to work because of illness or injury. 

“When taking out large mortgages which put a squeeze on day-to-day finances, we would encourage all borrowers to speak to an adviser about the value of mortgage protection products, and the premium plans which can work for their budgets.”