House prices in the United Kingdom grew at their slowest rate this year during May, the country's biggest mortgage lender said today.
Halifax, which is part of the HBOS banking group, found that house prices, on a seasonally adjusted basis, rose by 0.3 per cent in May, way down on the 1.1 per cent increase previously recorded in April. May's slowdown was the third in a row.
As a result the annual increase slipped for the second month running to 10.6 per cent from April's previously recorded 10.9 per cent.
The average house price now stands at £196,893 sterling.
'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,' said Martin Ellis, Halifax's chief economist.
Today's news from the Halifax is likely to cement market expectations that the Bank of England will refrain from raising rates again from the current 5.50 per cent when it completes its latest rate-setting meeting at midday today.
Mr Ellis said the slowdown is likely to carry on in the coming months.