House prices in the latest three months were 2.0% higher than in the preceding three months, according to Halifax’s latest house price index.

The quarterly rate of change fell for the second successive month and compares with 2.6% in March.

Prices in the three months to May were 8.6% higher than in the same three months a year earlier. This was slightly higher than April’s 8.5%, maintaining the annual rate within the narrow range of 8-9% where it has been throughout the period since last October with the sole exception of December (7.8%).

Martin Ellis, housing economist at the Halifax, said: “House prices in the three months to May were 2.0% higher than in the preceding three months. This measure of the underlying rate of house price growth eased for the second consecutive month, falling to its lowest since January. Annual house price growth, however, rose marginally from 8.5% in April to 8.6% and continues to be in the narrow range of 8-9% where it has been throughout 2015 so far.

“Housing supply remains extremely tight with the stock of properties available for sale currently at its lowest level for many years. At the same time, ongoing economic recovery, increasing employment, real earnings growth and very low mortgage rates are all supporting housing demand. This combination has kept annual house price inflation well above earnings growth although activity levels are subdued.

“The imbalance between supply and demand is likely to continue to push up house prices over the coming months. Looking further ahead, the increasing level of house prices in relation to earnings is expected to dampen house price growth.”