The UK saw annual house price growth slow to 10.0% in August, down from 11.0% in July, according to the latest Nationwide House Price Index.
Prices are up 0.8% month-on-month after taking into account of seasonal effects with the average house costing £273,751.
The increase puts the average house price up by almost £50,000 in two years.
Robert Gardner, Nationwide’s chief economist, said: “While annual house price growth softened in August, it remained in double digits for the tenth month in a row – at 10.0%.
“Prices rose by 0.8% month-on-month, after taking account of seasonal effects – the thirteenth successive monthly increase. Indeed, in the past two years, the average house price has increased by almost £50,000.
“There are signs that the housing market is losing some momentum, with surveyors reporting fewer new buyer enquiries in recent months and the number of mortgage approvals for house purchases falling below pre-pandemic levels.
“However, the slowdown to date has been modest, and combined with a shortage of stock on the market, has meant that price growth has remained firm.
“We expect the market to slow further as pressure on household budgets intensifies in the coming quarters, with inflation set remain in double digits into next year. Moreover, the Bank of England is widely expected to continue raising interest rates, which will also exert a cooling impact on the market if this feeds through to mortgage rates, which have already increased noticeably in recent months.