Prices in the three months to May were 0.2% lower than in the preceding quarter
The growth in house prices eased to 3.3% in the three months to May, compared with the same month last year, according to the latest Halifax House Price Index.
Prices in the three months to May were 0.2% lower than in the preceding quarter, and 0.4% higher than the previous month. The average house price in the UK was £220,706.
The 3.3% increase was lower than that seen in April, the Halifax report said, and was the lowest rate since May 2013, when it was 2.6%.
The Halifax data follows the revelation earlier this week that UK rents had fallen for the first time in eight years.
Meanwhile the number of house sales fell by 3% between April and May to 99,910, following three successive months when sales were regularly above 100,000. Supply also remains low, with the number of properties coming onto the market falling for the 14th consecutive month in April.
Martin Ellis, Halifax housing economist, suggested there were still positives to be had from the figures: “The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, is likely to support house price levels over the coming months.”