House prices have increased by 6.6% in the last 12 months, according to the latest Halifax house price survey.

This is the fastest annual rate of increase since October 2007, but the trend over the last few months has been for prices to slow. Prices fell slightly in April by 0.1%, taking the cost of the average UK home to £168,202.

"The underlying rate of house price growth has slowed in recent months following the relatively sharp rebound, albeit from a low base, in the second half of 2009," said Martin Ellis, housing economist at the Halifax.

"New sales instructions have risen, helping to push up the stock of unsold properties in recent months.As a result, the imbalance between supply and demand is easing somewhat."