Rising house prices have slowed down, according to a new survey.
House prices nudged up just 0.3% in June – the lowest increase since January and half the rate of growth in the first three months of the year.
Demand from buyers was at a standstill for the first time in 18 months and fewer sellers managed to achieve their asking prices, says the study from market specialists Hometrack.
Estate agents report sellers are getting less money for the first time in four months.
Looking at house prices by postcode, the firm found sellers in only a third of districts managed to achieve the price they were looking for.
Even sellers in London are experiencing a slowdown in the housing market with house price rises at half the level of those in the second half of last year.
On average, houses are taking just under six weeks to sell, which is quicker than in April and May.
The firm’s research director Richard Donnell said: “Two months ago the survey pointed to signs of growing price resistance to higher prices amongst buyers against a backdrop of widespread talk of a possible housing bubble. Pent-up demand has been feeding into the market over the last 18 months creating the upward pressure on house prices. This trend now appears to be running out of steam with no change in demand for housing over the month.
“As demand starts to cool so the rate of monthly house price growth has halved over the last three months. The proportion of the asking price being achieved has been steadily rising for the last 18 months but has now peaked as agents find it harder to sustain price rises.”
Donnell argues that years of pent-up demand from when buyers could not find a mortgage and fears of mortgage rate increases are cooling the market, leading to less demand and more homes on the market.