The average UK house price in July was £188,949, up 10.6 per cent from last year’s £170,825, according to Nationwide.
Despite the annual increase, prices remained flat on a monthly basis with July’s average just 0.1 per cent higher than June’s £188,903.
July’s 0.1 per cent growth is the slowest monthly increase since November 2012, which saw prices rise by the same percentage.
Nationwide chief economist Robert Gardner says the slowing rate of house price inflation reflects the ongoing effects of the Mortgage Market Review.
Gardner says: “The slowdown was not entirely unexpected, given mounting evidence of moderating activity in recent months. Mortgage approvals declined by almost 20 per cent between January and May, and there has been some softening in forward indicators such as new buyer enquiries.
“At least part of the slowdown in activity relates to the introduction of MMR measures.”
Despite the slowdown in activity between January and May, Bank of England figures this week showed mortgage approvals rose for the first time in five months in June.