Average UK house prices rose by 0.4% last month to reach £220,706, according to Halifax.

But this rise belies a slowing market, in which prices in the three months to May were 0.2% lower than in the preceding quarter. This is only the second quarterly fall in property prices in the last five years.

Annual house price growth eased to 3.3%, down significantly from its recent peak of 10% in March 2016, and the lowest annual rate since May 2013 (2.6%).

Martin Ellis, Halifax housing economist, said: “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.”

Lucy Pendleton, director of James Pendleton estate agents, agreed: “We are in a sideward-moving, not downward-spiralling, market.
 
“The real issue in the market at present is a reduction in the number of buyers, with more cautious landlords a key factor in this. Who can blame them? There has been a lot of change over the past year or two.”