The average house price in the UK hit a new record for a fifth time in a row this year, but signs of a slowing market are evident, Rightmove reports.

In a new data release covering June, it shows annual house price growth of 9.7%, bringing the average property price to £368,614.

In May, house prices rose by 10.2% on the year.

Rightmove expects this drop in pace to continue, saying that annual house growth will come to 5% by the end of this year.

Factors for this slowdown include “Affordability constraints, a better balance between supply and demand, and usual seasonal price drops,” notes the report.

There are 7% more properties on the market compared to this time last year, Rightmove says.

It adds that buyer demand for every available property is down 8% on the month in May but is 6% higher on the year, however, and 113% higher than the pre-pandemic five-year average for the month.

North London estate agent and former Rics residential chairman Jeremy Leaf says: “Even the Rightmove survey, in common with other recent housing indices, is telling us the housing market is coming off the boil despite the average asking price of newly-listed properties reaching record territory for the fifth consecutive month.

“Rightmove’s findings have been defying reason for several months but finally affordability issues, prompted by the rising cost of living and particularly energy and interest rates, are having an impact.

“Hopefully, the change in circumstances will mean vendors set more realistic asking prices so that the level of transactions, which are important for the health of the market, can keep up as closely as possible with last year’s.”