The average property price is now £298,806, compared with £299,251 in April and annual growth is up slightly to +0.5%, from +0.4% in April

Northern Ireland continues to record the UK’s strongest annual growth at +7.8%

Commenting on the latest figures Halifax head of mortgages Amanda Bryden said: “Property price trends continue to reflect the uncertainty linked to developments in the Middle East. Despite recent cuts to mortgage rates, higher inflation expectations have kept borrowing costs above the level seen at the start of the year, continuing to stretch affordability for many buyers and temper demand.

“Even so, overall activity has held up well, reflecting the underlying resilience of the UK housing market. Latest industry figures show transaction levels remain relatively stable, suggesting buyers and sellers are still moving.

“Among first-time buyers, annual growth is more subdued at +0.3%. While getting onto the property ladder remains a big challenge, there has been increasing support from lenders, including more flexible affordability checks and a growing range of low-deposit options.

Looking ahead, Bryden added: “Borrowing costs and consumer confidence are likely to continue shaping activity in the coming months, with house prices expected to remain broadly stable while interest rates stay elevated. The housing market remains closely tied to wider global developments, with a return to sustained house price growth dependent on an improvement in the inflation outlook and a fall in mortgage costs.”

Ian Futcher, financial planner at Quilter commented: “The Bank of England has held rates for now, but the outlook remains uncertain. Much will depend on how the situation in the Middle East evolves and what that means for inflation and energy prices. Any sustained pressure here could yet force policymakers to rethink their path.

“For now, we can expect the housing market to remain subdued. Higher energy costs are continuing to feed through to household budgets and affordability will be increasingly stretched, weakening consumer sentiment further. What’s more, while mortgage rates have eased slightly from the peaks seen earlier in the year as lenders work harder to attract what is a limited pool of buyers, they are still elevated and we can expect them to be for some time yet.

He concluded: “That is likely to keep house price growth in check over the coming months. Buyers are becoming increasingly price sensitive as higher borrowing costs and wider financial pressures bite, which means any upward movement in prices will likely be modest.

Providing an estate agents perspective, London estate agent and former Rics residential chairman Jeremy Leaf said: “Viewings, listings and even agreed sales may be holding up relatively well but the difficulty in obtaining commitment due principally to worries over the Iran conflict impacting the cost of living, is starting to make itself felt.

“Most buyers are taking their time to try to ensure as far as possible they have found the right place and are not overpaying. As a result, prices are wobbling a bit and transactions are taking longer to complete, which is increasing fall throughs. We are finding though that some stability will certainly increase confidence in the medium to longer term.”