House prices edged ahead by just 0.1% during June as demand from potential buyers stalled, research indicated today.
Estate agents in England and Wales reported only a 0.1% rise in new buyer registrations during the month, with falls in demand recorded in six out of 10 regions, according to property intelligence group Hometrack.
But the number of new homes coming on to the market continued to increase, rising by 2.9%, further easing the mismatch between supply and demand.
The group said the supply of homes for sale had increased at three times the rate of demand since March.
It said a combination of the general election, pre-Budget talk of austerity measures and the ongoing mortgage shortage had all contributed to uncertainty in the market.
Richard Donnell, director of research at Hometrack, said: "We expect demand for housing to slow further as seasonal factors come into play and households consider the implications of the Budget on their finances and on the economy in general."
The number of sales agreed continued to rise during June, despite the fall in demand, increasing by 2.8%.
The amount of time a property takes to sell remained broadly unchanged at an average of 8.4 weeks, while homeowners are achieving an average of 94.3% of their asking price.
