The cost of purchasing a new home continues to increase, with annual rates still in double digits, according to the Nationwide building society.

Buyers looking to purchase a new home in the coming months may be interested to read of the latest statistics from the body, which suggest that figures for May bring the annual rate of increase to 10.2 per cent across the UK.

This correlates with an average house price of £180,314.

However, the rate of increase is slowing month by month in a trend set to continue with predicted future interest rates rises, the building society suggests.

Commenting on the figures Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors, said: "The full effects of recent interest rate rises are yet to be felt, with a further slow down in price rises expected into the Autumn.

"Supply constraints have started to loosen in recent months, with instructions picking up as higher rates put greater pressures on homeowners."

Nationwide has also viewed the new figures as heralds of a further rate rise to 5.75 per cent in the coming months.