Halifax has reported that UK house prices in May rose by 0.4%.

However, annual house price growth eased again to 3.3%.

Prices in the three months to May were 0.2% lower than in the preceding quarter.

Martin Ellis, Halifax housing economist, said: “After reaching a recent peak of 10% in March 2016, the annual house price growth has since fallen to 3.3% in May.

“House prices have again fallen over the past three months. Overall, prices in the three months to May were -0.2% lower than in the preceding three months; the same rate as in April.

“The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, is likely to support house price levels over the coming months.”

David Hollingworth of L&C added: “The flattening in annual house price growth and slowing in transaction levels comes at a time of substantial uncertainty for potential homebuyers. Higher inflation and the resulting higher cost of living, combined with uncertainty around the outcome not only of the election, but also Brexit negotiations, are bound to see some buyers and sellers adopt a wait and see approach. However, that in turn limits supply of homes on the market and with ultra low mortgage rates widely available, prices are still likely to hold up.

“Demand from first time buyers remains good and they will have a better chance to build a deposit without prices spiralling out of their reach quicker than they can save. That may also be helped by the reduced level of activity in the buy-to-let market as landlords get to grips with higher stamp duty charges, reduction in tax relief and tighter lending criteria.”