THE average house price hit a record high in May, but the market is showing signs of cooling, according to Halifax, having risen for 11 consecutive months.

Across the UK, the typical property value increased by £2,857 month on month in May, Halifax said, Figures for Yorkshire and Humber show the average price for a home in the region is now £200,469 and that the annual increase over the past year was 9.5%.

Average house prices nationally have now risen to an overall average of £289,099.

An imbalance between supply and demand for properties remains the primary reason behind the climb, the report added.

Russell Galley, Halifax, said, however, the housing market has begun to show signs of cooling.

He said: “Mortgage activity has started to come down and, coupled with the inflationary pressures currently exerted on household budgets, it’s likely activity will start to slow.

“So, there is perhaps one green shoot for prospective purchasers – with overall buying demand down compared to last year, we may be past the peak sellers’ market. “The average cost of buying a home in the UK is up 1%, or £2,857, on last month, and has now risen for 11 consecutive months.

“Annual growth also remains in double digits, at 10.5%, although this is the slowest rate of growth seen since the start of the year.”

Northern Ireland had the strongest annual house price inflation in May, seeing prices rise by 15.2%.

The south west of England also recorded a strong rate of annual growth at 14.5%.

In Wales, house prices jumped by 13.7% annually, pushing the average house price there to a record £216,120.

Only Yorkshire and the Humber, Scotland and London recorded annual house price inflation below 10% in May.

In Scotland, house price growth continues to “underperform” relative to the UK average, according to Halifax, with annual inflation at 8.3%.

Over the past decade, the cost of a home generally has risen by 74%, Halifax said.

The strongest inflation over that period has been in London (84.2%), followed by the east of England (84.0%) and the East Midlands (82.1%).

In cash terms, London house hunters need £247,638 more than those looking 10 years ago, whereas those in the east of England need £153,930 and those in the East Midlands would typically need an extra £108,116.

Alice Haine, personal finance analyst at investment platform Bestinvest, said: “The latest data from the Halifax House Price Index adds to the mounting evidence that house price growth is being impacted by the uncertainty facing the wider economy…

“With rising house prices, lower disposable incomes and fewer people with the right debt-to-income ratio to qualify for a mortgage, some first-time buyers may delay their entry into the housing market, while existing homeowners may stick with their current home, focusing on a remodel or extension instead.”

Nicky Stevenson, managing director at estate agent group Fine & Country said: “In this uncertain economic climate, there is a sense that the housing market is at a crossroads, with future gains unlikely to match the huge spikes recorded over the last 12 months.

“While there remains a strong appetite among existing homeowners to trade up, the supply crunch which has driven record growth in the recent past is slowly starting to ease.

“As the imbalance between supply and demand continues to narrow, annual gains are expected to soften further in the months ahead.”

Martin Beck, chief economic adviser to the EY ITEM Club said: “The prospect of households seeing a fall in real incomes this year, as high inflation bites, means fewer people will be able to afford to borrow the necessary amount they need to buy at higher mortgage rates.”

Here are average house prices in May and the annual increase, according to Halifax:

East Midlands, £239,859, 12.3%

Eastern England, £337,216, 11.6%

London, £541,942, 6.3%

North East, £166,449, 10.6%

North West, £219,849, 10.6%

Northern Ireland, £185,386, 15.2%

Scotland, £198,288, 8.3%

South East, £391,845, 11.4%

South West, £305,173, 14.5%

Wales, £216,120, 13.7%

West Midlands, £244,071, 10.6%

Yorkshire and Humber, £200,469, 9.5%