House price growth slows for the second month running reducing annual housing inflation to 10.6%

House prices rose just 0.3% in May giving the clearest indication yet that interest rate rises are curbing house price growth.

The Halifax said that annual inflation rate fell from 10.9% to 10.6%, down from a peak of 11.1% in March. It says that average UK house prices were now £196,893.

The mortgage lender predicated a further moderate easing of house prices over the coming year.

Halifax chief economist Martin Ellis said: “The recent slowing down in monthly house price inflation, together with further evidence of moderation in housing market activity, suggest that the interest rate rises since last summer are having an impact on the market.”