Annual house price inflation in the UK hit its lowest level since July 2013 in February, Halifax claims.

The lender’s latest House Price Index recorded a 5.1% rise in values during February to £219,949, up 5.1% annually.

The annual growth figure is down from 5.7% recorded in January and is up just 0.1% on a monthly basis.

House price growth is now almost at half the rate of 9.7% recorded a year ago in the run-up to the Stamp Duty rule changes.

Martin Ellis, Halifax housing economist, said: “Housing demand is being supported by an economy that continues to perform well with employment still expanding.

“Meanwhile, the supply of both new homes and existing properties available for sale remains low. This combination is pushing up prices.

“The annual rate of house price growth has, however, nearly halved over the past 11 months. A sustained period of house price growth in excess of pay rises has made it increasingly difficult for many to purchase a home.

“This development, together with signs of reduced momentum in the jobs market and squeezed consumer spending power, is expected to curb house price growth during 2017.”

Meanwhile, north of the border, Your Move’s Scotland Rental Index showed average rents were up 4% annually in January at £571 a month.

Edinburgh and Lothians region dominated the rental market, with rents up 3.3% to £648, while the east of Scotland, including Fife, Dundee and Perthshire, remained the cheapest place to rent at £533 a month.

Brian Moran, lettings director for Your Move Scotland, said: “It was a strong start to the new year for many landlords across Scotland as rents continued to perform well.

“Despite new government rules which cut tax relief on buy-to-let properties making business more complicated for landlords, yield levels have remained strong in the past 12 months.”