HOUSE price growth continued its slowdown in May according to the latest figures from Nationwide.

Growth slowed to 2.4 per cent in May and prices fell by 0.2 per cent month on month.

Meanwhile there has been a shift in housing stock towards private renting and flats.

Robert Gardner, chief economist at Nationwide said the figures show there has been little shift in the balance between housing supply and demand in the past year.

"Annual house price growth has been confined to a fairly narrow range of c2-3 per cent over the past 12 months, suggesting little change in the balance between demand and supply in the market over that period.

"There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent."

Looking ahead, he predicts that economic conditions will continue to result in a slowdown in house price growth with an overall rise in the year of just one per cent: "Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low. Overall, we continue to expect house prices to rise by around one per cent over the course of 2018."

Mr Gardner went on to describe the shift towards property owned by private landlords as "striking", highlighting the fact that the number of privately owned rental dwellings has risen by 50 per cent in the past ten years.