UK house prices remained broadly flat in June, but fell 3.5% compared with June 2022, according to latest figures.
The Nationwide house price index said prices rose 0.1% in June after falling by a similar amount in May.
The average UK house price is now £262,239, up from £260,736 in May.
The EY Item Club said: “Given the scale of previous price gains and the headwinds facing the housing market from rising mortgage rates and other financial pressures, house prices continue to display a surprising degree of resilience.”
But it thinks “that resilience will likely fade, at least to a degree”.
Robert Gardner, Nationwide's chief economist, agreed: “The sharp increase in borrowing costs is likely to exert a significant drag on housing market activity in the near term.”
He pointed out “despite the higher interest rates available to savers, the sharp rise in rents, together with continued high rates of inflation more generally is continuing to make it difficult for many prospective buyers to save for a deposit”.
But he felt "a relatively soft landing is still possible, providing the broader economy performs as we (and most other forecasters) expect".
“Labour market conditions are expected to remain relatively robust”, while income growth is projected to remain solid.
With Bank Rate likely to peak in the quarters ahead, longer-term interest rates should also start to fall back, he said.
“Providing the labour market and interest rates perform broadly as expected, we are unlikely to see the waves of forced selling,” he added.