UK housing market forecast to avoid slump despite zero growth in prices

Rents jump by record 5.1% in a month as rental market struggles to meet demand from priced-out buyers

Britain's housing market is expected to avoid a slump triggered by rising interest rates, despite a drop in house price inflation to zero in May, according to analysts.

The Office for National Statistics said a decline in month-on-month growth from 0.5% in April to 0% in May meant the annual rate of house price inflation dropped to 1.9%.