There was further evidence of a deteriorating housing market in the UK as government data showed annual house price growth slowed to its weakest in over two years during May.

The Department for Communities and Local Government (DCLG) found that annual house price inflation fell to 3.7 percent in May from 4.9 percent in April, the weakest reading since March 2006.

The mix-adjusted house price, on a non-seasonally adjusted basis, was 218,151 pounds in May, down from 218,875 pounds in April, the DCLG said.

At the same time, annual house price inflation in London increased to 7.8% from 7.5% in April.

DCLG website