House prices are rising at the slowest pace for five years – but homes still cost £10,500 MORE than a year ago

House price inflation has fallen to its lowest level in five years, but buyers will still find that the average home costs almost £10,500 more than a year ago.

The price of the average UK home rose 2 per cent in the year to June to a new record of £215,444, according to the Nationwide house price index.

But this masked a continuing slowdown, with house prices expected to rise just 1 per cent this year and struggling London property sales dragging on the market.

Britain’s biggest building society forecast a ‘subdued’ property market in the near future.

However, patches of the UK are doing better than others, with house prices in the Midlands up by more than 4 per cent annually, while London fell by 1.9 per cent.

Robert Gardner, Nationwide’s chief economist, said: ‘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.’

Figures show the cost of the average home is near record highs when compared to wages.

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