House price growth slows slightly in May

UK annual house price inflation stood at 10.9 per cent in May this year, down from 11.3 per cent in April, according to the latest figures from Communities and Local Government (CLG).

In London, however, price growth was 14.5 per cent in May, up from 14 per cent in April.

Across the UK, house prices increased by 11 per cent in the three months to May and in London price inflation was 14.1 per cent.

These rates of increase brought the mix-adjusted average house price in the UK in May to £211,056, from £209,454 the month before.

David Stubbs, senior economist with the Royal Institution of Chartered Surveyors, said that the housing market remained healthy in the second quarter but pointed out that house price inflation has slowed somewhat since the period covered by the CLG's figures.

"House prices should show a further gradual slowing over the coming months, but interest rate increases have produced a rapid deterioration in affordability and the prospect of six per cent interest rates by the end of the year will dampen confidence and activity further," he added.

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