UK house prices fell at their fastest annual rate for 12 years, mortgage lender Halifax said.
House prices fell by 2.6% year-on-year in June after a 1.1% decline in May.
The average UK property now costs £285,932 compared to the peak of £293,992 last August.
Kim Kinnaird, director, Halifax Mortgages, described the fall as "modest".
“These latest figures do suggest a degree of stability in the face of economic uncertainty, and the volume of mortgage applications held up well throughout June, particularly from first-time buyers," she said.
"That said the housing market remains sensitive to volatility in borrowing costs.
“How deep or persistent the downturn in house prices will be remains hard to predict," Kinnaird added.
"With markets now forecasting a peak in Bank Rate of over 6%, the likelihood is that mortgage rates will remain higher for longer, and the squeeze on household finances will continue to put downward pressure on house prices over the coming year.”
Analysts at the EY ITEM Club said while "house prices continue to display a surprising degree of resilience", they expect this to fade.
"The rise in mortgage rates over the last month, if sustained, will increase the challenges faced by those renegotiating fixed rate mortgages and could, in theory, prompt a bigger fall in prices than the 10% peak-to-trough decline in values," it said.