British house prices rose by 0.6 per cent in May to extend a series of strong increases, but housing inflation is set to slow, property website Hometrack said today.
The May figure is down from a 0.7 per cent rise in April, and brings the total rise this year to 3.2 per cent.
Hometrack's figures undershoot other housing surveys that have shown house price inflation running at around 2 per cent per month but support the view of a property market that continues to ignore interest rate increases and steam ahead.
An increase in average sales price as a percentage of asking price also points to further upward pressure on house prices for the rest of the year, Hometrack said.
"Further house price rises are to be expected over the coming months," the report said. However, Hometrack expects the current housing boom to slow.
The Bank of England has raised interest rates three times since November - partly influenced by booming house prices - and some economists have said further rate increases are needed to avoid a housing bubble - although Hometrack said it saw no prospects for a crash.