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House Prices Up by 5.2% Annually Says Latest Index

The average price of a property increased by just 0.5% between April and May

Quarterly price growth slows to 2.5%, bringing average cost of a home in the UK to £237,837

House prices picked up slightly between April and May, according to the latest index by Halifax.

Month-on-month average prices increased by a modest 0.5%, just a quarter of May 2018’s monthly growth of 2.0%.

However, on an annual basis, house prices during March to May were 5.2% higher than the same quarter last year, with the index attributing this to notably lower growth during this period in 2018 leading to variances in year-on-year comparisons.

This is slightly higher than April’s annual growth rate of 5.0%, although the index does note that, on a quarterly basis, prices in the three months to May increased at a slower rate (2.5%) than the previous quarter (4.2%).

As a result, Halifax’s index suggests the average price of a home in the UK is £237,837, with the bank’s Managing Director, Russell Galley, commenting:

“The overall message is one of stability. Despite the ongoing political and economic uncertainty, underlying conditions in the broader economy continue to underpin the housing market, particularly the twin factors of high employment and low interest rates.

“Looking ahead, we expect the current trend of stability based on high employment and low interest rates to persist over the coming months, though clearly any downturn in the wider economy would be keenly felt in the housing market.”

However, a new report by the Resolution Foundation suggests that rising rents over the last 20 years have significantly reduced the financial gains associated with moving to a new city and a better paying job.

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