YEARLY house-price growth in the UK slowed to a five-year low in June, with values up just two per cent, the latest national index figures show.

Month-on-month prices increased by 0.5 per cent to an average of £215,444 and prices are now forecast to rise by just one per cent in 2018, according to the index from Nationwide.

The lender also released its latest quarterly data which shows that in the second quarter of the year, most regions saw a slowing in the annual rate of house price growth.

Only Scotland and Northern Ireland saw a notable price growth pickup with values up 3.1 per cent and 2.1 per cent respectively.

Robert Gardner, Nationwide’s chief economist, pointed out that annual house price growth has been confined to a fairly narrow range of two per cent to three per cent over the past 12 months, suggesting little change in the balance between demand and supply over that period.

“There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent,” he said.

“Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates.

“Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year.”