House prices in the South East and East Anglia grew by 0.1%, but remained either static or moved lower in all other regions.
The volume of new buyers registering with agents grew by 0.4% in May, down from increases of 2.1% in April and 4.4% in March.
The growth in the number of sales being agreed slowed significantly in May, rising 3.8% compared to increases of 10.1% and 13.2% over the previous two months.
Hometrack’s director of research, Richard Donnell said: “These trends mirror the pattern seen in previous years with overall levels of demand and sales agreed slowing after Easter.
“Increased mortgage rates and mounting concerns over the impact of the Eurozone on the UK’s economic growth and employment are likely to keep demand and prices in check as we move into summer.”
The time taken to sell a property stands at 9.3 weeks and the proportion of asking price achieved has increased to 93.2% – a level last reached in September 2010.
Hometrack said these improvements are concentrated in Southern England and are not representative of a general trend across the country.
London has seen demand rise ahead of supply over the last three months and prices move +1.4%. In contrast, demand across Northern regions has risen by 9% while supply has grown by 28%.
In the South East and East Anglia, supply over the last three months has grown slightly ahead of demand but average house prices have grown by 0.3%.
Hometrack found that the time which London properties remain on the market ranges from 5.1 weeks compared to 13.9 weeks in Wales.
It also found the proportion of the asking price achieved is weakest in the North East region at 91.2% and highest in London at 94.6%.
