“While activity is likely to cool in the near term, the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation.
“Another important factor is that the majority of existing homeowners are on fixed rate mortgages, meaning they are largely insulated from short-term changes in interest rates.”
For first-time buyers, the picture was mixed. “A slower pace of house price growth may be disappointing news for existing homeowners,” Bryden said.
“However, for those looking to step onto the property ladder, stable prices are helpful, even if higher mortgage rates mean affordability remains stretched. The average price paid by first-time buyers has fallen slightly to £238,908, its lowest level so far this year.”
Regional breakdown
Price performance continued to diverge sharply along a north-south axis. Northern Ireland recorded the strongest annual growth in the UK at 7.6%, bringing the average property value to £224,851. Scotland followed with annual growth of 4%, taking the average to £222,448.