House price growth stalled in June for the first time in four months, as economic uncertainty and a seasonal summer slowdown hit the property market, new figures show.
Hometrack said new buyer registrations slid by 0.5 per cent, the first month-on-month decline in demand for five months, but supply continued to grow, pushing prices down further.
London was the only region to register a price increase last month, with values rising 0.3 per cent, but weaker demand in the rest of the country is hampering potential price growth, the research group said.
Prices were down in seven regions in June compared with three in March, according to the data.
In the South East and Wales, monthly prices remained unchanged, but dipped by 0.1 per cent in the East Midlands and the South West.
Property prices fell by 0.2 per cent in East Anglia, the North East, North West, West Midlands and Yorkshire and Humberside.
Richard Donnell, director of research at Hometrack, said: “As we move into the summer months the traditional seasonal slowdown will ensure that demand remains subdued – the Olympics are only likely to contribute further to this.
“As a consequence we expect the balance between supply and demand to widen with house prices set to come under renewed downward pressure over the second half of the year.”
The time on the market in southern regions has risen to 8.4 weeks, up from eight weeks in April, while in London it remains at a recent low of five weeks, the analysis shows.
Mr Donnell added: “Despite weaker demand, low interest rates and an ongoing scarcity of housing for sale continue to act as a major support to overall pricing levels.
“However as consumers are showing, the greatest risks in the short term stem from the problems in the Eurozone.”
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