Annual house price inflation was highest in the North East where prices increased by 4% in the 12 months to May 2023.

The East of England was the English region with the lowest annual growth, where prices were little changed in the 12 months to May 2023.

Commenting on the latest figures MT Finance director Tomer Aboody says: ‘Although property prices still managed to rise slightly over the past year, these figures illustrate the reduction in buyer confidence.

‘As the market gets to grips with constant negativity in terms of rising interest rates and high inflation, we will see a slowdown in property transactions.

‘Something needs to change in order to inject some fuel into the market, as sales volumes are nearly half what they were this time last year. The property market is the backbone of the UK economy and can’t be allowed to grind to a complete halt.’

MPowered Mortgages director  Emma Hollingworth says that given the steady rise in mortgage rates and high inflation levels, today’s figures are not unexpected.

“Buyer confidence has tempered in recent months, particularly with two-year fixed rates reaching the highest levels since the 2008 financial crash. However, we are beginning to see these rates stabilise in the last. Moreover, with energy bills falling we can expect inflation to trend in a more manageable direction, boosting buyer confidence in the long run.

Benham and Reeves director Marc von Grundherr says: “The pandemic property rollercoaster ride has certainly ground to a halt so far in 2023, but rather than the market coming off the rails, what we’re now seeing is house prices returning to pre-pandemic levels.”

Barrows and Forrester managing director James Forrester believes many buyers and sellers remain in property market limbo at present and it’s become a bit of a waiting game on both sides.

“Buyers are waiting to see if mortgage rates level out in order to boost their purchasing power, while sellers are hoping that they will achieve a better price once the economic storm clouds have passed.”

House Buyer Bureau managing director Chris Hodgkinson takes a similar line: “We’re currently seeing the scenario that many predicted towards the backend of last year, whereby the market is at a bit of a standstill. House prices aren’t crashing by any means, but a drop in market activity has also caused them to stall”.

For those who are looking to sell, a good price is still very achievable, it’s finding a buyer who is in a proceedable position that is the biggest challenge at present.”