House prices increased by 11% in the year to June, suggesting the market is cooling after hitting the 20% mark at the turn of the year.

The estate agent’s association NVM also said the number of homes for sale increased by 42%, easing the housing shortage that has contributed to price inflation.

In the first quarter of the year the NVM recorded a 2.1% fall in prices compared to the autumn, but in the second quarter they recovered with a 3.5% increase.

Onno Hoes, chair of the NVM, said: ‘The figures for the second quarter of 2022 that we have presented today are still strong but less extreme than in previous quarters. There is more breathing space in a housing market that is still very tight.’

The statistics agency CBS will publish its own figures later in the month, but they are likely to be lower than the 18.6% year-on-year increase in May.

Fragile consumer confidence is also making buyers more cautious, while the steep rise in interest rates since the start of the year is restricting their ability to borrow. The average 10-year fixed rate for a house covered by the national mortgage guarantee has gone up from 10.7% to 3.64% since January.

However, eight out of 10 properties are still selling for more than the asking price, with almost half of buyers in the €500,000 to €750,000 price bracket going over by €50,000 or more.