UK house prices increased at a slower rate in May compared with April, putting the brakes on the expectations of many concerned with the possibility of a housing bubble.  According to Hometrack, house prices increased 0.5% during the month of March, which was less than the months of January and February at 0.6% each. 

London continues to be a model of consistency, as house prices there are still rising.  However, the rate of increase has slowed to 0.6% during the month of May.  The prior six months showed an average of 0.8% increase each month.

Richard Donnell of Hometrack commented on the current trend in house prices throughout the UK, saying: "House price inflation is starting to moderate both in London and nationally.”

Donnell added: "Strong price increases, widespread talk of a possible housing bubble and recent warnings from the Bank of England on house price inflation are starting to test the resolve of buyers."

Central London may be demonstrating what will soon be the trend for the rest of London as house prices increased only 0.2% in May.

Donnell continued: "There are already signs of slower activity in the mortgage market and we expect to see further signs of slowing house price momentum in the months ahead."

The Help to Buy scheme has been viewed by some as the catalyst for a possible housing bubble, whilst others see the programme as a necessary way to get more people into new houses who could otherwise not afford it.

With slower house price increases the potential for more house owners to stay put and look into the possibility of remortgaging which can offer significant advantages.