UK House prices fell by 0.9% in June, less than half the rate of the previous month, Nationwide has reported, adding that house purchase transactions remain subdued across the UK.

Nationwide said that house prices are 6.3% lower than this time last year, but remain 4% higher than 2 years ago.

The average cost of a home in the US now stands at £172,415 and is £13,629 cheaper than in October last year.

Scotland has proven resilient to falling house prices as it was the only region to see annual growth up by 0.6%.

Main Points
- House prices fell by 0.9% in June, less than half the rate of the previous month
- Prices are 6.3% lower than this time last year, but remain 4% higher than 2 years ago
- House purchase transactions remain subdued across the UK
- Northern Irish and Scottish activity levels stand out at each extreme

With falling numbers of transactions and poor affordability conditions, first-time buyers activity as a proportion of overall house purchase completions has held up fairly well. Nationwide reports that first-time buyers accounted for about one third of house purchase transactions in the first quarter of the year, exactly in line with the average over the last three years.

However, movers’ activity fell back further. Movers accounted for about half of all house purchases in the first quarter, below the 55% average of the last three years. In contrast, estimates of buy-to let house purchase activity held up very well. These purchases accounted for about 19% of house purchase completions in the first quarter – significantly more than the average over the last three years of 14%.

Commenting on the figures Fionnuala Earley, Nationwide’s Chief Economist, said: “The pace of house price falls slowed significantly in June. House prices fell by 0.9% during the month, less than half of the rate of the 2.5% fall recorded in May. Prices in June are now 6.3% lower than this time last year and have fallen 7.3% from their peak last October.

The price of a typical house is now £172,415. This is over £13,500 less than it would have cost at the top of the market and over £11,500 less than this time last year. However, the strength of house price growth up until last year means that prices are still 4% higher than two years ago and 9% higher than three years ago.”