The Nationwide Building Society released its house price index for the U.K. on Wednesday. The U.K. Nationwide house price index increased 0.3% in May, in line with expectations, after a 1.0% rise in April.

On a yearly basis, the U.K. Nationwide house price inflation was up to 4.6% in May from 5.2% in April. It was the slowest rise since August 2013.

Analysts had expected the index to drop to 4.7%.

"However, much will depend on supply side developments. In recent years the rate of building activity has remained well below that required to keep up with population growth," Nationwide's chief economist Robert Gardner noted.

He added that the house price increase is expected "to converge with earnings growth, which has typically been around 4 percent per annum".