UK house prices grow 1.2% in May
The average UK house price rose 1.2 per cent in the year to May, according to latest government data.
On a monthly basis prices nudged upward only slightly, by 0.1 per cent, bringing the average property value in the UK to £229,431.
In England, annual prices came in at 1 per cent higher and monthly at 0.1 per cent, making the average English house price £245,817.
The South West saw a monthly rise of 1.2 per cent and London a drop of 2.5 per cent, while on an annual time frame, the North West region grew by 3.4 per cent and London dropped 4.4 per cent.
Wales told a different monthly story, with an average price drop of 1.4 per cent since April and an annual rise of 3 per cent. This means the average property price in Wales in May was £159,428.
In Scotland, house prices went up by 2.8 per cent in the 12 months to May, and 1.2 per cent on a monthly basis, prompting Garrington Property Finders to say: “Aberdeen retains its unwanted wooden spoon as the city where prices are falling fastest… [but] while England’s average rate of price growth is being dragged down by London’s sharply falling prices, the declines in Aberdeen are being brushed aside by the Scottish market as a whole.”
Looking at the overall UK figures, Yopa chief property analyst Mike Scott says: “The slowdown was thus expected, as we have already seen it in these other reports, and we can expect that the official figure will be reporting a year-on-year price standstill within a few months.
“This will be due to a further weakening of the market in south-east England, with price changes in the South East and East regions turning negative by the end of this year, while price growth continues in the rest of the country.
James Pendleton found director says that the six month extension to the Brexit deadline has helped with transactions, which is not necessarily reflected in the May data, but, “that could all change next week when we find out who the next prime minister will be, and Brexit hyperbole is ratcheted up again; but for the time being it feels like buyers and sellers are making hay while the sun shines.”
Meanwhile, MT Finance commercial director Gareth Lewis believes that, “We are unlikely to see any significant change to property prices unless the new prime minister makes a significant change to stamp duty which is a big blocker to those buying second homes or buy-to-lets.”
Source: Mortgage Strategy