| Hometrack said house prices across the country rose by 0.6pc in June from the previous month, with those in the capital up 1.1pc. That means that house prices over the first half of the year have risen by 2.9pc. However, given the slowdown last year, prices are only 2.3pc higher on a year-on-year basis.
Meanwhile, propertyfinder.com reported a sharp fall in house price rise expectations from 7.7pc in May to 4.3pc in June, and noted that buyers demanded discounts of 6.1pc in June compared with 0.7pc in March. At the height of the recent mini-boom, buyers were prepared to pay the full price.
It also said 78pc of respondents expect the market to rise over the next year, down from 84pc in May and the first fall since September.
Richard Donnell, director of research at Hometrack, said confidence is fragile despite reports of a buoyant market. He said high house prices, stretched affordability levels and rising unemployment could hit sentiment.
"Whilst there is clear momentum in the market we believe that a modest cooling in the rate of growth is likely over the second half of the year, he concludes," he added.
He also said the headline figures masks the "stark" difference between London and the rest of the country, as a result of the capital's underperformance between 2001 and 2005.
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