House price growth slowed in May, figures from the UK's biggest mortgage lender, HBOS, have revealed.
The value of the average home rose by just 0.3 per cent from April to hit £196,893.
Over the three-month period, annual house price growth is now at 10.6 per cent, a 0.5 per cent drop from the three-month average of 11.1 per cent recorded in March.
"Recent slowing in monthly house price inflation, together with further evidence of moderation in housing market activity, suggests that the interest-rate rises since last summer are having an impact on the market,'' commented Martin Ellis, chief economist at HBOS.
Demand for housing would be further moderated by "higher interest rates, the negative trend in real earnings growth and rising food prices" in the coming months, he predicted.
Meanwhile, the National Housing and Planning Advice Unit (NHPAU) has predicted that lower income earners will have to pay around ten times their income to get onto the housing ladder by 2026 if current trends continue.
The current figure is around 7.1 times the average salary of a lower-income earner, NHPAU said, putting house purchase out of reach for many.
Find out more about how you can compare UK property
© Adfero Ltd