Housing market stalls amid jobs slowdown

House prices stalled last month as a slowdown in the jobs market and concerns about the economy knocked confidence, an industry survey showed.

The value of a typical home was unchanged in June compared to May, according to the Halifax house price index.

Prices have only risen in two of the past seven months, according to the survey, which showed property values fell 0.3pc between April and May.

Average house prices stood at £296,665, which was up 2.5pc compared to the same time last year – and also a slight slowdown from May.

Halifax head of mortgages Amanda Bryden said: “Affordability is still stretched, particularly for those coming to the end of fixed-rate deals.

“The economic backdrop also remains uncertain; while inflation has eased, it’s still above target, and there are signs the job market may be softening.”

Official statistics last month showed Britain’s unemployment rate rose to a four-year high of 4.6pc in the three months to April, while the number of people on payrolls fell by 55,000 between March and April.

Bank of England governor Andrew Bailey warned last month that there are signs Rachel Reeves’s £25bn National Insurance raid is hitting jobs and pay.

Ashley Webb of Capital Economics said: “So, the big picture is that the housing market remains weak and it still struggling to regain momentum from the stamp duty-induced lull and the recent deterioration in the labour market.”

Separate data from Nationwide showed house prices fell at the fastest pace since February 2023 in June.

It said the value of the average home fell 0.8pc to £271,619, which was well below analyst estimates for a 0.1pc increase in prices.

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Housebuilding stocks climbed despite the Halifax data showing the property market stalling between May and June.

Developers gained 0.3pc across the FTSE 100 and FTSE 250. Vistry was the best performer, rising by 1pc.

Persimmon was the weakest housebuilder, falling 0.3pc.

Northern Ireland has by far the strongest annual house price growth in the UK, according to Halifax.

Prices rose by 9.6pc over the past year to an average of £212,189.

Scotland recorded the next strongest annual house price growth in June, increasing by 4.9pc to £214,891, while Wales rose 3.9pc to £229,622.

Among English regions the North West has the highest rate of property price inflation, up 4.4pc over the last year to £241,938.