Record high property asking prices in May

LONDON (Reuters) - Asking prices for property in England and Wales rose to a record high in May, a survey showed on Monday, with house price inflation accelerating despite expectations for a much weaker housing market this year.

Property Web site Rightmove said average asking prices rose 2.2 percent on a year ago between April 13 and May 10 to hit an average 242,500 pounds, compared with a 1.3 percent annual rise in the month before.

Prices increased 1.2 percent on the month. The figures are not adjusted to take seasonal factors into account but suggest there is may still be some momentum left in the market as it trends lower.

Economists are predicting falls in house prices of about 10 percent this year and Bank of England policymaker David Blanchflower has warned prices could dive by about a third unless aggressive, immediate action is taken.

However, interest rates are unlikely to come down fast given worries over inflation and, after a decade in which house prices nearly trebled, Bank Governor Mervyn King has indicated a moderation in prices is probably needed.

(Reporting by Matt Falloon)