UK house prices remained “fairly static” in May, falling by just 0.1 per cent on a monthly basis, research from Halifax has found.
Halifax’s house price index found the typical UK home now costs £288,688, a slight drop on the £288,862 recorded in April.
However, this finding represented a growth on a yearly basis, with prices now 1.5 per cent higher than they were at the same point in 2023.
This also represented a growth compared to April when prices were 1.1 per cent higher on a yearly basis.
Halifax head of mortgages, Amanda Bryden, said: “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.”
Additionally, Propertymark CEO, Nathan Emerson 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.”
The research also found the north west was the strongest performing nation or region in the UK, where house prices grew 3.8 per cent on an annual basis.
As a result, the average price of a property in the north west is now £232,258.
Additionally, Northern Ireland continued to show strong growth, rising by 3.2 per cent in May.
Similarly, house prices in Scotland also increased, with a typical property now costing £204,952, an increase of 1.9 per cent on the previous year.
However, eastern England recorded the largest decline in annual growth across the UK, with the average house price now standing at £329,853, down 0.8 per cent in May.
Unsurprisingly, London continued to have the most expensive average price tag, standing at £536,821, up by a marginal 0.2 per cent compared to last year.
Purplebricks CEO, Sam Mitchell, added: “We are seeing the property market continue on its road to recovery, with good stock coming to market and a sharp increase in viewings.
“What we need in the coming months is for the new government to focus on policy that will help people across the country get on the property ladder, through lower mortgage and interest rates, lower transaction costs, and lower rents.”
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