UK House Prices Defy Expectations with Surprise Rise in May
The UK housing market has shown signs of resilience, with house prices rising by 0.4% in May, according to Nationwide. This unexpected growth has been attributed to wage growth and lower inflation, which have boosted buyer confidence.
The average house price now stands at £264,249, up from £261,962 in April. This increase reverses the 0.4% drop seen in the previous month. Andrew Harvey, senior economist at Nationwide, expressed surprise at the market’s resilience, given the significant affordability pressures.
UK house prices rise 0.4% in May
Despite high mortgage rates, buyers are pushing through, driven by confidence in their personal financial position. The easing of inflation, coupled with robust wage growth and low unemployment, has contributed to this optimism.
Interest Rates
The Bank of England is expected to announce its next interest rate decision on 20 June. While headline inflation has slowed, the services sector remains stubbornly high, which may delay rate cuts. The Bank’s target is to keep inflation at 2%.
Ways to Make Your Mortgage More Affordable
- Make overpayments to save later
- Move to an interest-only mortgage to keep monthly payments affordable
- Extend the life of your mortgage to reduce monthly payments
 Mortgage rates remain high
In related news, the number of UK residential transactions in April rose by 10% to 90,430, marking the fourth consecutive month of growth. This increase has been driven by consumer confidence and strong product availability.
 UK residential transactions rise 10% in April
Digital mortgage lender Molo has cut rates on its fixed UK resident buy-to-let products by up to 33 basis points. This move is expected to provide landlords with more affordable financing options.
 Molo cuts rates on UK resident buy-to-let products
As the housing market continues to evolve, it’s essential for buyers and landlords to stay informed about the latest trends and developments.
