House prices in the UK grew at their slowest rate this year during May, research from Halifax reveals.
The lender found that house prices rose by 0.3% in May, compard to the 1.1% increase previously recorded in April.
May’s slowdown was the third month in a row the market has growth slow.
As a result the annual increase slipped for the second month running to 10.6% from April’s previously recorded 10.9%.
The average house price now stands at 196,893.
Martin Ellis, chief economist at Halifax, says: The recent slowing in monthly house price inflation, together with further evidence of moderation in housing market activity, suggests that the interest rate rises since last summer are having an impact on the market.
Higher interest rates, the negative trend in real earnings growth and rising food prices are likely to bite increasingly on house holders’ finances over the coming months, curbing housing demand.
“House price inflation is expected to moderate as a result.