The price of the last month's price was just 0.1%, according to the Nationwide.
Demand continues to be supported by strong labour market conditions where the unemployment rate remains near 50 year lows and the number of job vacancies close to record highs, said Mr Gardner.
He said that the Bank of England is expected to increase interest rates by as much as 0.5% on Thursday and that could have a cooling effect on the market.
Inflation is likely to reach double digits towards the end of the year, and we expect the market to slow down as household budgets intensify in the coming quarters. Mark Harris, the chief executive of SPF Private Clients, said that first-time buyer numbers are strong but that is likely to reflect a significant financial input from the Bank of Mum and Dad, as deposit levels rise along with house prices and interest rates.
Borrowers were extremely keen to secure a fixed-rate mortgage before rates go up again, as they are expected to do later this week, he said. Minds are focused on getting deals done before the cost of borrowing increases further. There are a lot of challenges to come - from the surge in energy prices in October, to runaway inflation continuing to surpass wage growth, and the pressure on household finances will intensify. She said the rate for a two-year 75% loan-to-value fixed-rate mortgage has gone up to 2.88% in June from 1.57% in December - the fastest six-monthly increase since 1995.
She said that if the Bank of England increases rates in line with market expectations, that could rise to about 3.1% by the end of the year.