House prices rose 0.3% in June according to Nationwide Building Society, the third month of what it termed ‘subdued growth’.

On a quarterly basis, growth slowed to 1% in the three months to June from 1.6% in the previous three months. This meant that annual house price inflation currently stands at 5% in the Nationwide index.

Data released by the Bank of England pointed to a slowdown in house purchase approvals, but other evidence indicates the market will remain strong over the summer, especially when the World Cup is over and normal purchasing patterns resume.

“The Bank of England is still in a ‘wait and see’ mode,” said Nationwide group chief economist Fionnuala Earley. “My hunch is that interest rates will remain at 4.5% for some time and that will keep the market steady.”