The average asking price of homes in the UK has hit a record high, while separate indices show a slowdown in the sustained growth of property values, suggesting buyers may be demanding bigger discounts.#

Rightmove said the average asking price jumped 1.2pc in May, rising for the fifth month in a row and bringing the median price to a record of £317,281.

But the annual increase was 3.2pc, which Lucian Cook, head of residential research at Savills, described as “muted”.

He added: “It does fly in the face of some slowdowns reported in other indices and indeed the poll by the Royal Institution of Chartered Surveyors, which is a robust indicator of what is going on in the market.”

It comes after Halifax’s house sales price index showed earlier this month that the housing market was stagnating, as the quarterly rate of growth fell for the first time in more than four years.

House prices were 0.2pc lower in the three months to April than in the preceding three months, the first quarterly decline since November 2012. Nationwide’s index also suggested a slowing rate of growth, with prices growing at the slowest rate in four years.

Source: The Telegraph (online)