Justin Anim, managing director of Pattinson Estate Agents, believes it’s not all doom and gloom.
He said: “I think we have got quite a fractured market at the moment.
“In popular areas, prices are heading up but in not so popular areas prices are under a bit of pressure.
“The whole thing continues to be driven by banks and financial institutions being able to lend money.
“We have had a really strong month though.”
He added: “The problem with these kinds of figures is that they give you a headline story but there isn’t ‘one’ housing market – it’s a very fractured thing.”
A total of 47,643 loans were approved for people buying a property during the month, down 4% on May and below the 50,036 average for the previous six months.
It’s reported that the number of people seeking homes dwindled amid uncertainty over jobs and the wider economy as the Government ramped up its austerity drive.
The scrapping of home information packs (Hips) also tempted more sellers on to the market, which has seen supply outstrip demand.
Despite record low interest rates and a stamp duty holiday for most first-time buyers, the number of properties changing hands across the UK is running at half the levels seen prior to the financial crisis.
Martin Gahbauer, Nation- wide’s chief economist, said: “A combination of restrictive credit conditions and uncertainty about the future economic outlook continues to limit the pool of buyers to those with relatively large financial resources.
“Many potential buyers still lack the confidence to purchase their first home or trade up when faced with uncertainty over future income and employment prospects.”
He said it would take several months to establish if the market is on a downward trend, or if prices are merely flattening out.