House price inflation slowed to an annual five per cent in June from six per cent the month before, Government statistics showed yesterday - further evidence that the housing market is cooling gradually.
The Office for the Deputy Prime Minister said the average house price in June stood at £ 184,152 compared with £182,651 in May.
"It is consistent with recent evidence that shows the housing market is stabilising," said Alan Clarke, UK economist at BNP Paribas.
England and Wales saw house price inflation fall while it rose in Scotland and Northern Ireland.
House price inflation fell in all regions of England except for London, the ODPM said, where it rose to 1.8 per cent from 1.6 per cent.
In the three months to June on a year ago, annual house price inflation was six per cent in the UK as a whole and two per cent in London, the ODPM said.
For first-time buyers, the house price inflation rate fell to
6.7 per cent in June from 7.7 per cent in May. The average price paid by first-time buyers across the whole of the UK was £150,356 in June, while the average price paid by former owner occupiers was £199,450.
The figures come on the heels of another survey showing that UK property prices rose at their slowest rate in nearly ten years in the second quarter.
The Land Registry's latest residential property price report showed a 5.43 per cent year-on-year rise, the lowest price increase since 1996 and down from an increase of 16.98 per cent in the same threemonth period last year.
The average house price in England and Wales for the quarter was £184,924.
The subdued property market has left the average price of a home in the West Midlands just 5.13 per cent higher than a year earlier at £155,115.
Meanwhile, the volume of sales in England and Wales decreased by 27.7 per cent to 216,890 in the quarter.