House prices in the UK, grew by 0.3 per cent during the year to May 2008, but this signalled a decline in the annual growth rate recorded in April 2008 of 1.7 per cent, according to property investment firm, Assetz.

These results corresponded with that of five other UK house price indices (Financial Times House Price Index, Rightmove, Nationwide, Halifax and Communities and Local Government).

It was found that although prices were still growing, the rate of growth has slowed, with a 10.6 per cent decrease between May 2007 and May 2008. This slowdown has been in evidence for nine consecutive months.

The average house price decreased by £1,741 in May 2008, according to Assetz, compared with a drop of £238 in the 12 months from May 2007, when the average price was £209,917

Stuart Law, chief executive of Assetz, said: "We are in a period of weakness, not a crash, and vendors are more easily negotiated with, provided they are a forced seller. I would recommend that buy-to-let investors take advantage of the current market and continue adding to their portfolio by buying from motivated sellers.

"I am frequently being told by both estate agents and developers that there is a great deal of pent-up demand in the market from first-time buyers, restricted by the current limited mortgage availability and higher deposit requirements. Demand has not gone away, buyers still want to purchase a home, but they are waiting for improved deposit requirements."