Annual house price growth rises to 2.2%

House prices across the United Kingdom rose 2.2% in May year-on-year, according to the latest official Land Registry figures.

The latest UK House Price Index, published today by the Office for National Statistics (ONS) shows the average property in the UK was valued at 281,000 in May, up 2.2% on the same period the previous year. This is also an increase from the 1.3% year-on-year increase recorded in April.

The figure was also 1.2% higher than the average recorded for April.

London (3.9%), west Midlands (2.3%) and Yorkshire & Humber (1.9%) recorded the largest month-on-month price increases.

Iain McKenzie, CEO of The Guild of Property Professionals, comments: “Another solid month of growth in house prices is great news for sellers during the summer months when footfall at estate agents is at its highest.

“The latest transactions data shows a fifth consecutive increase in sales, meaning that more people are getting on the property ladder. This can only be good news for buyers and sellers alike, with sellers in particular not being forced to reduce their asking price so significantly.”

However, figures published earlier this week by Rightmove showed a faster-than-usual drop in house prices in July.

The ONS also published figures today showing average rents increased 8.6% in the 12 months to June.

Figures published today also showed inflation has remained steady at 2% in the 12 months to June, in line with the Bank of England’s target, prompting speculation of an interest rate cut in August.