This was compared to a rise in prices of 0.3% in April. The average property price is now £296,648 compared to £297,798 last month.
The annual rate of growth slowed to +2.5% in May, from +3.2% in April.
Amanda Bryden, head of mortgages at Halifax, said: “These small monthly movements point to a housing market that has remained largely stable, with average prices down by just -0.2% since the start of the year. The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty.
“Affordability remains a challenge, with house prices still high relative to incomes. However, lower mortgage rates and steady wage growth have helped support buyer confidence.
“The outlook will depend on the pace of cuts to interest rates, as well as the strength of future income growth and broader inflation trends. Despite ongoing pressure on household finances and a still-uncertain economic backdrop, the housing market has shown resilience – a story we expect to continue in the months ahead.”
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Nathan Emerson, CEO of Propertymark, added: “This slight dip in house prices will likely have been influenced as a direct consequence to the current state of the global economy. There will always be a need for people to move house regardless of international trading relations; however, many aspiring or current homeowners will no doubt be discouraged until they feel confident in their long-term affordability.
“It would be very welcome news for consumers if lenders do feel confident enough to offer additional competitive mortgage products across the summer months, but much will depend on the rate of inflation across the coming months.”
Regional and national split
House price growth across Northern Ireland, Wales and Scotland continues to outpace English regions.
Northern Ireland once again recorded the fastest pace of annual property price inflation, up by +8.6% over the past year. The typical home now costs £209,388, though prices remain well below the UK average.
Wales and Scotland also posted strong annual growth of +4.8% in May. Average prices now stand at £230,405 and £214,864 respectively.
Among the English regions, the North West and Yorkshire and the Humber lead the way, both showing annual house price growth of +3.7%. Average property values in these areas are now £240,823 and £213,983 respectively.
In contrast, London continues to see more subdued growth, with prices rising by just +1.2% year-on-year. However, the capital remains by far the most expensive part of the UK housing market, with the average home now priced at £542,017.
