Average house price in Yorkshire was £206,370 in June, says Halifax

The annual rate of house price growth stood at 1.6 per cent, and on an annual basis house prices have increased for seven months in a row.

Halifax said the average UK house price in June was £288,455, edging down from £288,931 in May. The average price in Yorkshire and the Humber was £206,370, an annual growth rate of 1.9 per cent.

Amanda Bryden, head of mortgages, Halifax, said: “UK house prices stayed relatively flat for the third successive month in June, with the slight fall equivalent to less than £500 in cash terms.”

She continued: “This continued stability in house prices – rising by just 0.4 per cent so far this year – reflects a market that remains subdued, though overall activity has been recovering.

“For now it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices.

“Mortgage affordability is still the biggest challenge facing both home buyers and those coming to the end of fixed-term deals.

“This issue is likely to be eased gradually, through a combination of lower interest rates, rising incomes, and more restrained growth in house prices.

“While in the short-term the housing market is delicately balanced and sensitive to the pace of change to base rate, based on our current expectations property prices are likely to rise modestly through the rest of this year and into 2025.”

Labour’s General Election landslide could deliver a confidence boost to the housing market, some commentators suggested.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the wealth manager, said: “A stable political environment can potentially deliver a confidence boost to the housing market, particularly one that has struggled over the past year with high borrowing costs and a dearth of available and affordable stock.

“Buying a first home, upsizing and even downsizing are all major personal finance decisions, which is why confidence in how your country is run is vitally important.

“Interest rates have remained at a 16-year high of 5.25 per cent for almost a year causing major affordability challenges for first-time buyers and those looking to move to larger homes.

“While the combination of lower inflation and strong wage growth has offered a slight boost to housing affordability, for many the dream of home ownership is still out of reach.

“Throw in interest rate cuts, however, with the first reduction expected as early as next month on August 1, and, in turn, more competitive mortgage rates, and the market could experience a surge in demand.”

Ms Haine added: “Labour will be keen to encourage more first-time buyers to get a foot on the UK’s housing ladder, something that has become a major challenge for many young, and not so young, buyers in recent years who have struggled to find affordable homes in many parts of the country.”