According to the index, the average non-seasonally adjusted house price for June was £271,619, compared with £273,427 in May of this year.

In terms of monthly change June saw a 0.8% decline compared with a 0.4% rise in May.

Northern Ireland was the top performing area, with annual house price growth of 9.7%, while East Anglia was the weakest performing region, with 1.1% year-on-year rise.

Commenting on the figures, Robert Gardner, chief economist at Nationwide, said: “UK house price growth slowed to 2.1% in June, from 3.5% in May.

“Prices declined by 0.8% month-on-month, after taking account of seasonal effects.  The softening in price growth may reflect weaker demand following the increase in stamp duty at the start of April.

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“Nevertheless, we still expect activity to pick up as the summer progresses, despite ongoing economic uncertainties in the global economy, since underlying conditions for potential homebuyers in the UK remain supportive.”

Finance professionals gave their take on the HPI

Jeremy Leaf, estate agent and former RICS residential chairman:

“In our offices, the amount of stock presently overhanging the market has not only resulted in lower prices as seen in these figures but has meant more protracted transactions.

“Looking forward, only realistically-priced properties which stand out from the crowd will continue to attract attention as worries about the economy and inevitable tax rises on the horizon play their part."

Mark Harris, CEO at SPF Private Clients:

“Moderating house price growth is good news for the wider health of the housing market, making home ownership more realistic for first-time buyers, many of whom are already relying on the bank of Mum and Dad.

“Lenders have been reducing mortgage rates and enhancing loan-to-incomes, increasing the size of loan that some borrowers can access.

“However, while the borrowing environment may be easing, higher inflation and the wider economic picture remains a concern, which could mean the pace and size of further base rate reductions is more gradual than markets thought only a short while ago."