House prices edged up in the year to June according to Halifax, which said a lack of homes for sale was propping up the market. 

Year-on-year house prices are up by 1.6 per cent, with the average home worth £288,455. This is the same level of annual growth recorded last month.

The price of a typical home dipped by 0.2 per cent in the month of June, though this is the equivalent of less than £500.

Amanda Bryden, head of mortgages at Halifax, said higher mortgage rates are continuing to keep a lid on prices and activity.

 'This continued stability in house prices reflects a market that remains subdued, though overall activity has been recovering,' said Bryden.

'For now it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices.

'Mortgage affordability is still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals. 

'This issue is likely to be eased gradually, through a combination of lower interest rates, rising incomes, and more restrained growth in house prices.' 

What's happening across the UK? 

Certain regions of the UK are seeing prices rise more than others, according to Halifax, with more affordable parts of the country tending to see more growth than expensive ones.

Prices in Northern Ireland are 4 per cent up on last year, while in the North West of England, average prices are up 3.8 per cent.

The average home in Scotland now costs £204,663, which is 1.6 per cent up on last year. In Wales the typical home has increased by 2.7 per cent year-on-year and is now worth £220,197.

However, in Eastern England, where the average home is worth £328,747, prices are down 0.9 per cent compared to June 2023.

What a Labour government means for house prices?  

The Labour Party has won a big majority and has major plans for housebuilding. 

Sir Keir Starmer's Government has said it will build 1.5 million new homes in its first term, and has pledged to keep mortgage rates low and help first-time buyers.

Anthony Codling, head of equity research for European housebuilding and building materials at RBC Capital Markets says: 'If election pledges turn into policy, today is more than just a new day in housebuilding, it is the dawning of a new age. 

'In the next 100 days we are likely to see the reinstatement of housing targets, the refining of greenbelt and the reform of planning, and by the end of the year the newest version of Labour may have announced a new generation of new towns. 

'Over the last few years housebuilders' potential has been hamstrung, but over the next few years this potential is likely to be unleashed.'

While Labour's policies may lead to more homes being built, the future of interest rates is likely to have a much larger bearing on house prices than its policies.

At the moment, higher mortgage rates are restricting many home buyers' budgets and putting people off making a move.

Andrew Montlake, managing director at mortgage broker, Coreco, told the news agency Newspage: 'The property market has proved more resilient than many expected. A lack of supply has definitely played a role in that. 

'Mortgage affordability remains a challenge but the steady flow of rate cuts from lenders this week alone is seeing things improve slightly on that front. 

'The decisive win for the Labour Party overnight, and fact that the election is now over, could see demand for property pick up. 

'If the Bank of England reduces the base rate at its next meeting, sentiment will improve as if a switch had been pressed and that could see house prices rise more than just modestly.'

Jeremy Leaf, north London estate agent and a former Rics residential chairman added: 'The election definitely added to nervousness in the property market but slower-than-expected falls in mortgage rates weighed more heavily. 

'We are hearing in our offices and on the ground that most buyers and sellers put moves on hold so we expect the resilient recovering of activity to remain.

'Looking forward, the rise in listings means prices will stay stable and the arrival of a new government will add certainty.'