LONDON, June 21 Reuters British house prices increased by 3.5 in the 12 months to April, the Office for National Statistics ONS said on Wednesday, slowing from the 4.1 rise in March.

London was the region with the lowest annual growth, the ONS said, with prices in the capital up 2.4.

Recent measures of Britain39;s housing market have indicated strain in the sector from higher mortgage rates as stubbornly high consumer price inflation has spurred markets39; bets for the Bank of England to increase borrowing costs for longer than expected.

Britain39;s biggest mortgage lender, Halifax, earlier this month said house prices dropped by 1.0 yearonyear in May, the first annual decline since 2012. Rival Nationwide reported a 3.4 annual fall in prices, the largest since 2009.

Reporting by Suban Abdulla; editing by David Milliken

Source Reuters