Property prices are still rising
House prices jumped by 1.5 percent month-on-month in May following a 3.1 percent decline in April, according to an index. Halifax said the average UK house price is now £224,439.
By Vicky Shaw
UK property values TRUMPED May 2017 at 1.9 per cent higher
Property values in May were 1.9 percent higher than a year earlier, experiencing slower growth than the 2.2% annual increase in April.
Russell Galley, managing director, Halifax, said: "The month-on-month figures are more volatile than the quarterly or annual measures.
"In the three months to May, house prices were 0.2 percent higher than the previous quarter and on an annual basis they are 1.9% higher.
"Both of these measures have fallen since reaching a recent peak, in the final months of last year.
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"These latest price changes reflect a relatively subdued UK housing market."
Howard Archer, chief economic adviser at EY ITEM Club, said: "The housing market is struggling to gain traction amid challenging conditions and we suspect that any meaningful upturn will remain elusive over the coming months.
"We expect house price gains over 2018 will be limited to a modest 2 percent. At this stage, we expect prices to rise no more than 3 percent in 2019."
Sarah Beeny, founder of estate agent Tepilo.com said: "A slowdown in growth levels is what the market needs to ensure it remains robust, as continuous high rises are unsustainable and make it difficult for many first-time buyers to get on the ladder.
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"The whole market depends on first time buyers entering, so this more modest, sustainable level of growth is good news."
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said house prices "remain supported by a healthy labour market, which is ensuring that few people are being forced to sell their homes in a weak market".
Mr Tombs said he expects house prices to "flatline" in the second half of this year.
Mike Scott, the chief property analyst at estate agent Yopa, said: "Both supply and demand are subdued compared with last year, and we may see a lower total number of house sales in 2018 than in recent years."