LONDON (Reuters) - Prices of homes being put up for sale in Britain have hit record highs despite still expensive mortgage costs, but the pace of gains has slowed, according to data from property website Rightmove.

The average asking price for residential properties touched 375,131 pounds ($474,578.23) in the four weeks to mid-May, Rightmove said.

However, the 0.8% increase in month-on-month terms represented the weakest rise so far in 2024.

Prices were only 0.6% higher when compared with the same period last year.

Britain's housing market slowed last year as higher borrowing costs weighed on the market but it has shown signs of picking up in recent months as falling inflation boosts household incomes and raises the prospect of interest rate cuts.

Tim Bannister, Rightmove's director of property science, said the momentum of the spring selling season was not a sign of a return to strong demand.

"The market remains price-sensitive, and with prices reaching new records in the majority of regions and mortgage rates remaining elevated, affordability for many home-buyers is still stretched," Bannister said.

Rightmove said asking prices rose by the most - up 1.3% in annual terms - in the high end of the market.

($1 = 0.7905 pounds)

(Reporting by William Schomberg; Editing by Suban Abdulla and Sarah Young)