According to Nationwide’s latest house price index, Britain’s residential housing market has started to slow down.

Monthly growth totalling 0.5% in May fell from April’s figure of 0.9%. May’s fall has been partly caused by recent interest rate hikes by the Bank of England to 5.5% as well as the likelihood of a further rise which means that a cooling period can be expected in the coming months.

Fionnuala Earley, Nationwide’s chief economist, said: “Higher interest rates with the threat of more on the horizon should signal caution to those thinking about stretching themselves to get a foot on the ladder.

“This is not only because of the level of debt in the short term, but also because in a low inflation world, the real value of the debt is not eroded as quickly. As a result the burden of servicing that debt remains heavier for much longer.”