British house price inflation eased slightly in May, according to government figures today that suggest rising interest rates are starting to cool the market.
The Department for Communities and Local Government said house prices in Britain rose 10.9 per cent year-on-year in May after an 11.3 per cent increase in April. The average house price in May was £211,056.
The government's figures are based on sale completions and so lag other surveys.
Reports from mortgage lenders suggest house price inflation has remained robust in the face of rising interest rates, although most lenders expect the market to slow later this year.
Last week, the Royal Institution of Chartered Surveyors said prices in June rose at their weakest rate since the start of 2006.
A report by Bank of America on Friday suggested there is a one in five chance Britain's housing market will crash in the next two years.