UK House Prices Remain Static in May

According to the latest Halifax House Price Index, average house prices in the UK remained stable in May, with a slight decrease of 0.1% on a monthly basis. The annual rate of house price growth, however, increased to 1.5% last month, up from 1.1% in April.

UK house prices remain static in May

The typical home in the UK now costs approximately £288,688, compared to £288,862 the month prior. The North West was the strongest performing region in the UK, where house prices grew 3.8% on an annual basis in May. The average price of a property in the North West was £232,258.

Northern Ireland continued to show strong annual growth, up 3.2% in May, pulling back slightly from 3.3% in April. House prices in Scotland also increased, with a typical property costing £204,952, 1.9% more than the year before.

In Wales, house prices grew annually by 0.7% to £219,483, compared with 1.1% in April. Eastern England recorded the largest decline in annual growth; house prices there were an average £329,853, down 0.8% in May on an annual basis.

London had the most expensive average price at £536,821, up marginally (+0.2%) compared to last year.

House prices across the UK

Amanda Bryden, head of mortgages at Halifax, said: “UK house prices were largely static in May, edging down slightly by -0.1% or around £170 in cash terms.”

“On an annual basis house prices rose for a sixth consecutive month, up by +1.5% vs +1.1% in April. The average property price now stands at £288,688.”

“Market activity remained resilient throughout the spring months, supported by strong nominal wage growth and some evidence of an improvement in confidence about the economic outlook.”

“This has been reflected in a broadly stable picture in terms of property price movements, with the average cost of a property little changed over the last three months.”

“A period of relative stability in both house prices and interest rates should give a degree of confidence to both buyers and sellers.”

“While homebuyers and those remortgaging will continue to respond to changes in borrowing costs, set against a backdrop of a limited supply of available properties, the market is unlikely to see huge fluctuations in the near term.”

UK house prices graph