The Halifax has reported that house prices in the three months to April were 9.2% higher than in the same three months a year earlier.
In addition, house prices in the latest three months (February-April) were 1.5% higher than in the preceding three months.
It stated that the average price of a home is now £212,321.
Martin Ellis, Halifax housing economist, said: “House prices in the three months to April were 1.5% higher than in the previous quarter, this rate has halved from 2.9% in March. The annual rate of growth eased from 10.1% to 9.2% in April. Both the quarterly and annual rates are at their lowest since last autumn.
“Current market conditions remain very tight as the severe imbalance between supply and demand persists. This situation, combined with low interest rates and rising employment and real earnings, should continue to push house prices up over the coming months.
“Weakening sentiment regarding house price prospects and a dip in consumer confidence, however, suggest that annual house price growth may ease.”
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “It’s not surprising to see that house prices have softened slightly following the rush to complete before changes to stamp duty took hold for buy-to-let purchasers. However, it’s important to note that prices are still rising annually at an alarming rate.
“The release of our ‘Bank of Mum and Dad’ report this week brought this issue into sharp focus, as it revealed how hard it is for first time buyers to get onto the property ladder without a helping hand from their family and friends.
“The Bank of Mum and Dad will lend £5 billion to loved ones in 2016, making it the equivalent of a top ten 10 mortgage lender in the UK. This may be good news for families with the financial resources to pursue this model, but what about the rest? Now more than ever, we need to make sure that we are building enough houses to re-balance supply and demand in the UK property market, so that no one is forced to abandon their dream of homeownership.”