According to the findings of the Financial Times' index, house prices rose by just 0.5 per cent in May, with the average home now costing £220,319 compared with £219,143 in April.
This compared with much higher monthly increases at the end of last year, with December alone seeing a one per cent increase in average house price.
"The data continue to strongly support the view that, in England and Wales, house price increases have now slowed and flattened out since February," commented Dr Peter Williams from Acadametrics - the company that conducted the research on behalf of the FT.
"Market indicators from across the property purchase process (enquiries, mortgage approvals, transactions)
Dr Williams added that existing homeowners were likely to suffer in the current market conditions.
"Interest rate increases will continue to bite, not least upon the many thousands of borrowers who have taken out fixed rate mortgages since mid 2005 (typically for 2/3 year periods)," he said.
Homeowners predicting trouble when their current fixed-rate arrangement ends should consider National Homebuyers says property expert Julian King. He says: "There are thousands that are faced with the problem of finishing their current mortgage deal and entering a new deal that could be financially disastrous for them.
"Equally of concern should be not the 'flattening' of property prices, but the very real drop in prices as reported in the East End of London, areas of Nottingham and York".
National Homebuyers is the UK's leading fast property buying firm, guaranteeing to make an offer to purchase any property surveyed for cash. Alternatively they can arrange a Sell and Rent Back solution which allows the vendor to release equity in their property, but remain living in their home. Their website is www.nationalhomebuyers.co.uk/
