House prices fell by 0.9% in June, less than half the 2.5% drop recorded in May, according to Nationwide.
The figures show prices are 6.3% lower than this time last year but remain 4% higher than two years ago. They have fallen 7.3% from their peak last October.
The average house price in June was £172,415 compared to £173,583 in May. This is over £13,500 less than it would have cost at the top of the market and over £11,500 lower than this time last year.
Nationwide found house prices are lower than a year earlier in 12 out of 13 UK regions with only Scotland avoiding annual house price declines. It says prices in London are moving more into line with the UK wide trend and the North-South gap in price changes continues to narrow.
The building society also reports house purchase transactions remain subdued across the UK and notes the level of transactions is a key driver of house prices.
Fionnuala Earley, chief economist for Nationwide, says: “ With house purchase transactions so far below their long term trend it seems unlikely there will be any rapid turnaround in housing market fortunes in the coming months. However, as prices continue to fall affordability measures become more favourable for those in a well financed position to be able to buy.”
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