UK house prices increased by 2.2% year-on-year in June, according to data released by Nationwide. The average price of a typical UK home was £277,484 in June.

This annual increase followed a 1.7% rise in May. However, on a month-on-month basis, UK house prices experienced a 0.6% fall in May, with the average price reaching £278,024 that month. Nationwide's data also indicated an increase in annual house prices across all regions of the UK in the second quarter.

Northern Ireland saw the largest regional increase, with the average home price rising by 8.6% year-on-year in the second quarter. House prices in Scotland and Wales both increased by 3.5% year-on-year during the same period. London experienced a 1.6% rise in house prices year-on-year in the second quarter.

The average two-year fixed mortgage rate stood at 5.53% on Tuesday. This compares to 4.83% at the start of March. Similarly, the average five-year fixed-rate mortgage was 5.53% on Tuesday, up from 4.95% at the beginning of March.

Robert Gardner, chief economist at Nationwide, commented on factors influencing the market. "In recent weeks a shift in market expectations for the future path of Bank rate has helped to bring down the market interest rates which underpin fixed-rate mortgage pricing," Gardner said. He also added, "If the energy shock continues to subside, the Bank of England may not need to raise interest rates, or at least by less than had previously been anticipated, a view reinforced by the fact that UK inflation has also been lower than expected in recent months."

Gareth Lewis, deputy chief executive of MT Finance, described the current situation. "Nationwide's figures reflect a softening housing market," Lewis said. He added, "We are seeing valuers cautious on value while buyers are looking for a steal and prepared to negotiate hard on price."

Amy Reynolds, head of sales at Antony Roberts, noted a seasonal push. She said there is "the familiar pre-summer push from families wanting to be settled before the new school year, but the mood is steady and selective rather than booming or stalling." Reynolds also stated, "We expect a quieter, price-sensitive summer, with activity firming again in the autumn once buyers have more clarity on rates and the geopolitical noise has died down."