The housing market, which has for many months been subject to consistent increases, is showing signs of levelling off according to one industry body.

Today's Halifax house price index for April suggests a monthly increase in average house prices of 1.1 per cent, constituting part of an annual change of 10.9 per cent.

It marks a fall from the 11.1 per cent annual increase on property values demonstrated in March, while suggesting an average UK house price of £196,745.

Martin Ellis, chief economist at the Halifax, said: "House prices increased by 1.1 per cent in April; the smallest monthly increase so far this year and the second lowest since July 2006.

"There is accumulating evidence of a slight easing of conditions in the housing market with further signs of moderation in both demand and activity in the past month."

The bank stated that signs of an easing in the housing market include a drop in the number of mortgage approvals - five per cent lower in the first three months of 2007 than in quarter one of 2006 - and a decline in buyer expressions of interest.

Meanwhile, the Bank of England's monetary policy committee has today elected to increase interest rates to 5.5 per cent, which is likely to further impact upon affordability difficulties in the first time buyer market.