Decision on Interest rates due at 12pm today
U.K. house prices rose at the weakest monthly pace this year in May, a sign higher interest rates are cooling demand for property.Home values climbed 0.3 percent from April to an average £196,886. On the year, prices rose 10.6 percent in the three months through May. The figures are adjusted for seasonal swings.
The pace of house-price growth has 'been a concern'' to the central bank, which is trying to rein in Britons' spending and tame inflation. Forecasts by the bank's panel, which meets today, show one more rate increase from the current six-year high of 5.5 percent may be needed to curb consumer prices.
The recent slowing in monthly house price inflation, together with further evidence of moderation in housing market activity, suggests that the interest-rate rises since last summer are having an impact on the market.
The Bank of England will announce its interest-rate decision at noon today in London.