UK house prices rose by 1.5% in June compared with a year ago, according to Nationwide's house price index.
The typical price for a home rose to £266,604 last month, marking a 0.2% increase from May's average of £264,249.
It means house prices are now 3% below the all-time highs recorded by Nationwide's index in the summer of 2022.
“Housing market activity has been broadly flat over the last year, with the total number of transactions down by around 15% compared with 2019 levels," said Robert Gardner, Nationwide's chief economist.
"Transactions involving a mortgage are down even more (nearly 25%), reflecting the impact of higher borrowing costs. By contrast, the volume of cash transactions is actually around 5% above pre-pandemic levels."
Gardner pointed out how the average mortgage rate for a first-time buyer on a five-year fixed deal with a 25% deposit was around 4.7%, up from 1.3% in 2021.
“As a result, housing affordability is still stretched. Today, a borrower earning the average UK income buying a typical first-time buyer property with a 20% deposit would have a monthly mortgage payment equivalent to 37% of take-home pay - well above the long-run average of 30%," he added.