By Jonathan Davies

Growth in house prices fell to a two-year low in June, according to the Nationwide Building Society.

Annual house price inflation fell to 3.3% last month, down from 4.6% in May. It compares with annual growth of more than 11% this time last year.

House prices in Wales and Scotland, however, are lower than last year.

On a monthly basis, house prices were down 0.2%. The average house price is now £195,055.

Robert Gardner, Nationwide's chief economist, said: "House price growth continues to outpace earnings, but the gap is closing, helped by a pick-up in annual wage growth, which moved up to 2.7% in the three months to April from 1.9% at the start of the year.

"The slowdown in house price growth is not confined to, nor does it appear to be driven primarily by, developments in London."