Source: Sharecast
According to Halifax, house prices fell by 0.4% last month following a 0.3% rise in April.
The average property price is now £296,648.
However, Halifax said the market remained stable, with house prices up 2.5% over the year.
Amanda Bryden, head of mortgages at the lender, said: “These small monthly movements point to a housing market that has remained largely stable, with average prices down just 0.2% since the start of the year.
“The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty.”
The UK housing market saw a flurry of activity earlier this year, as homebuyers rushed to complete deals ahead of changes to stamp duty thresholds, which came into effect on April.
Looking ahead, Bryden acknowledged that affordability remained a challenge for many, with house prices still high relative to incomes.
But she continued: “Lower mortgage rates and steady wage growth have helped support buyer confidence.
“The outlook will depend on the pace of cuts to interest rates, as well as the strength of future income growth and broader inflation trends.
“Despite ongoing pressure on household finances and still-uncertain economic backdrop, the housing market has shown resilience, a story we expect to continue in the months ahead.”
The Bank of England has trimmed interest rates twice so far this year, to 4.25%. Further cuts are expected, although markets remain undecided on the timing. The rate-setting Monetary Policy Committee is juggling a sluggish economy with a recent spike in inflation, to 3.4%.