Halifax has reported that house prices increased by 1.0% in May, the 11th consecutive monthly rise.

This means that the average house price set a new record (£289,099). House prices have risen 74% in the last 10 years.

Northern Ireland and the South West were the top areas for annual house price inflation.

Russell Galley, managing director at Halifax, said: “The average cost of buying a home in the UK is up 1%, or £2,857, on last month, and has now risen for 11 consecutive months. Annual growth also remains in double-digits, at 10.5%, although this is the slowest rate of growth seen since the start of the year.

“The average cost to buy a home in the UK is now £289,099, hitting yet another record high. Despite the very real cost of living pressures some people are experiencing, the imbalance between supply and demand for properties remains the primary reason driving the continued climb in house prices.

“For house hunters, the extent of the impact of property price inflation continues to be linked to the type of home they are looking to buy. Compared to May last year, you’d need around £10,000 more to buy a flat, but an additional £50,000 for a detached home. This clearly creates a knock-on effect for those looking to make their first home move, as the rungs on the housing ladder have become increasingly wider.

“However, the housing market has begun to show signs of cooling. Mortgage activity has started to come down and, coupled with the inflationary pressures currently exerted on household budgets, it’s likely activity will start to slow.

“So, there is perhaps one green shoot for prospective purchasers; with overall buying demand down compared to last year, we may be past the peak sellers’ market.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Although only reflecting evidence from Halifax customers, this historically reliable survey does confirm trends we are seeing on the ground.

“The cost of living crisis and successive interest rate rises are finally starting to affect the housing market. Prices are still rising but not as rapidly as they were a few months ago. However, a correction seems unlikely while stock remains so low, particularly of property in most demand i.e. three and four-bedroom family houses.”