UK house prices stall for the second month as agents warn of a summer slump

House prices in the UK have not grown for the second month in a row during June. This is happening because interest rates are going up, which is making it harder for people to buy homes. Estate agents are also warning that the housing market could be slow during the summer.

The average price of a home in the UK was £277,484 in June. This is slightly less than in May, when the price also fell. Experts had expected house prices to increase a little in June, but they did not.

One estate agent said that people want to buy homes before the school year starts, but the market is not very active. She expects a slower summer with lower prices, and more activity in the autumn when people know more about interest rates. The current situation is affected by global events, including the war in Iran.

Mortgage rates have dropped a little recently, but they are still much higher than before the Iran war started. For example, the average interest rate for a two-year fixed mortgage is now 5.53%, which is higher than it was in March. The same is true for five-year fixed-rate mortgages.

Because of the slowdown, shares in companies that build houses have gone down. Some of these companies saw their share prices fall on Wednesday.

However, on a yearly basis, house prices have increased. In June, the average house price was 2.2% higher than in June last year. This yearly increase happened in all areas of the UK, with Northern Ireland showing the biggest growth.

An economist said that if oil prices continue to fall, the Bank of England might not need to raise interest rates further. This could help lower mortgage rates. UK inflation has also been lower than expected recently, which supports this idea.