House prices saw their slowest growth since late 2023 last month, according to a major lender. 

The average property price fell in value by £143 in July, Lloyds Bank said, after rising just £584 in June.

At £299,253, the average house price is now only 0.1 per cent higher than a year ago, the slowest rate of annual growth since November 2023. 

Average house prices have remained flat for two years, with the typical home remaining within a narrow 0.5 per cent range for two years.

Prices have barely moved over the last four years and the typical home is worth only 2 per cent more than it was in the summer of 2022.

Amanda Bryden, head of mortgages at Lloyds, said buyers and sellers were facing a more uncertain economic backdrop and volatile mortgage rates. 

She said: 'Affordability remains a challenge for many would-be buyers and, following recent events in the Middle East, mortgage rates have edged higher again after easing earlier in the summer.'

'While housing demand remains broadly steady, activity continues to respond quickly to changes in mortgage rates.

'Looking ahead, we expect market activity and house prices to remain relatively stable over the remainder of the year.'

In England, stronger house price growth remains concentrated in northern regions. 

Prices in the North East were up 2.8 per cent, taking the average property price to £182,488, while the North West saw prices rise 2.1 per cent to £247,836.

By contrast, prices fell in parts of southern England. The South East saw prices fall 2 per cent year-on-year to £381,146, while in London the average home is down 1.3 per cent to £533,930.

Amy Reynolds, head of sales at Richmond estate agency Antony Roberts said: 'Although prices remain flat from a national average perspective, there is a regional divide with London and the South East continuing to lag.

'ONS figures show over 420,000 people left London for other parts of the UK last year alone, the first real fall in the capital's population outside of the pandemic in nearly four decades. 

'It's becoming harder to make the case that London is aspirational anymore, and that shift in sentiment matters for the market – buyers are voting with their feet.'

Prices in Northern Ireland continue to surge, up 7.4 per cent year-on-year while Scotland also continues to record solid growth, with prices up 3.6 per cent to an average of £223,246. 

In Wales, house prices are 1.6 per cent higher than a year ago, taking the typical property value there to £231,458.