House prices up 1.5% year-on-year in May, says Halifax

The annual rate of house price growth in the UK was 1.5% in May, up from 1.1% in April. 

According to the latest Halifax house price index, the average house price in May stood at £288,688, the sixth consecutive month of growth on an annual basis. 

In the shorter term, this marked a slight decline, with prices growth down 0.1% on a monthly basis and 0.3% down on the quarter. 

The North West experienced the highest growth, with house prices up 3.8% on an annual basis in May, while the East of England recorded the largest decline in annual growth. 

Amanda Bryden, head of mortgages at Halifax, said that market activity had “remained resilient” throughout the spring, backed by strong nominal wage growth and improved confidence in 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,” she said. 

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

>> Read more: Nationwide reports ‘modest rebound’ in house prices with 0.4% growth in May 

“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.” 

Commenting on the index, Nathan Emerson, chief executive at Propertymark, said: “The housing market seems to be generally moving in the right direction, with house prices going up annually from this time last year.  

“With a general election now on the horizon, there may be potential caution from buyers and sellers, especially those hoping to step onto the housing ladder for the first time, as they await any announcements regarding government support.  

“People will also be carefully awaiting the Bank of England’s next announcement this month.”