The housing market is still “frenetic” but showing signs of slowing as month-on-month house price growth dipped to 0.8% in June, according to Rightmove.

This was down from monthly growth of 1.8% in May, however June’s figure was still the biggest increase at this time of year since 2015

Average house prices reached £336,073 this month, a rise of £2,509 from May.

Direct annual comparisons are not possible as Rightmove suspended its index during lockdown last year, but compared to March 2020 prices have risen by 7.5%.

Prices are at record highs in all countries and regions of the UK, but the unprecedented lack of available property on agents’ books is starting to slow the pace of sales.

The number of sales agreed in May was 17% higher than the same period in 2019, but in April sales were 45% higher than the same month two years ago.

Growth has been strongest at the top of the housing ladder, according to Rightmove, as buyers have been less impacted by affordability woes. 

At the top of the market, average prices up by 12.3% or £67,394 since March 2020 compared to +7.5% for all properties.

In May, sales of properties over £500,000 was 49% above the same period in 2019, despite buyers knowing they will miss the maximum stamp duty saving that comes to an end in June.

In some of the fastest-growing regions, prices are being driven higher by cash-rich buyers relocating from more expensive areas.

In Wales, prices are up by 14.6% since March 2020, while buyer demand has risen by 44% – the highest of any region or country. 

In the South West prices were up by 11.4% as properties old at their fastest ever pace, resulting in the lowest number of homes available per estate agent branch of any English region at just 10, compared to a national average of 17 per branch.

Rightmove director of property data Tim Bannister says: “Buyer demand remains very strong, though with an all-time low in the number of properties available for sale on estate agents’ books and new stock at higher than ever average prices, there are early signs of a slowing in the frenetic pace. 

“Since the market re-opened last May in England we have seen huge jumps in the numbers of sales being agreed, but these are now rising at a slower pace. 

“Record low interest rates and stamp duty tax reliefs have helped many to afford higher prices, satisfying their pent-up desires for a new home fit for a new era. 

“Some of that demand has now been met, and the phasing out of stamp duty reliefs has also taken away some of the urgency to move, though our high traffic and search data indicate that there is still strong buyer demand.

“However, higher prices combined with a lack of fresh choice coming to market are reducing some buyers’ ability or desire to move, and while we expect the market to remain robust, there are early signs of a slackening in the incredible pace of activity that we’ve seen over the last year.

“This super-charged activity cannot go on forever, but we expect the market to remain vigorous for at least the remainder of the year.”

Swansea-based agent Astley’s director Matt Barry says: “Over the past 12 months we’ve seen a dramatic change in demand in the local market.

“This has far surpassed anything I’ve seen previously and we’re now regularly receiving offers from multiple buyers per property. 

“This often results in us requesting best and final offers and homes selling for far in excess of the original asking price. 

“The competition for each property has been further increased by a slowdown in the number of properties coming to market.

“We’ve also noticed a large uplift in the amount of people relocating from England, with many people now enjoying the benefit of working from home, wishing for larger gardens or to be nearer beauty spots and the coast.”

Jackson-Stops chairman Nick Leeming says: “Despite the fact that the first stamp duty deadline is just weeks away, our branches are as busy now as at any point I can remember. 

“Lifestyle re-evaluations have taken firm root which will lead to sustained demand, especially for rural and suburban locations. 

“We’re still seeing people head to countryside hotspots in their droves, pushing up prices in these areas to new highs.

“There were 18 buyers chasing every listing across our branches in the South West last month as towns and villages which were once out of reach to five-day-a-week commuters, now present realistic options for hybrid or remote workers. 

“Additionally, London’s prime commuter belt towns continue to perform extremely well price wise, including Sevenoaks, Reigate, Dorking and Cranbrook, as many buyers continue to seek opportunities for more spacious accommodation and a larger slice of outdoor space.

“But, while buyers remain active, the availability of stock on the market has continued to contract.

“With demand strong and pricing high, now is the time for vendors to capitalise on these favourable market conditions, especially during these peak summer months when properties look their best and while many buyers will be looking to secure a move in time for the new school term in September.”