Home costs stalled final month as a slowdown within the jobs market and considerations concerning the economic system knocked confidence, an trade survey confirmed.
The worth of a typical residence was unchanged in June in comparison with Could, based on the Halifax home value index.
Costs have solely risen in two of the previous seven months, based on the survey, which confirmed property values fell 0.3pc between April and Could.
Common home costs stood at £296,665, which was up 2.5pc in comparison with the identical time final 12 months – and likewise a slight slowdown from Could.
Halifax head of mortgages Amanda Bryden stated: “Affordability continues to be stretched, significantly for these coming to the tip of fixed-rate offers.
“The financial backdrop additionally stays unsure; whereas inflation has eased, it’s nonetheless above goal, and there are indicators the job market could also be softening.”
Official statistics final month confirmed Britain’s unemployment fee rose to a four-year excessive of 4.6pc within the three months to April, whereas the variety of individuals on payrolls fell by 55,000 between March and April.
Financial institution of England governor Andrew Bailey warned final month that there are indicators Rachel Reeves’s £25bn Nationwide Insurance coverage raid is hitting jobs and pay.
Ashley Webb of Capital Economics stated: “So, the massive image is that the housing market stays weak and it nonetheless struggling to regain momentum from the stamp duty-induced lull and the current deterioration within the labour market.”
Separate knowledge from Nationwide confirmed home costs fell on the quickest tempo since February 2023 in June.
It stated the worth of the typical residence fell 0.8pc to £271,619, which was properly under analyst estimates for a 0.1pc improve in costs.