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May 2016: House Prices Up but Annual Growth Remains Steady

House prices in the three months to May have risen compared to the previous quarter, although annual pace has slowed, according to the latest house price index.

UK Housing Property

House prices in the three months to May have risen compared to the previous quarter, although annual pace has slowed, according to the latest house price index.

The monthly House Price Index from mortgage lender Halifax shows that the average house price in the three months to May has increased by 1.4% from the previous quarter, bringing the average house price in the UK to £213,472.


Month-on-month, the average house price grew by 0.6% from April to May, offsetting the 0.8% decrease experienced in the month from March to April.


However, the Halifax Index emphasizes that the quarterly figure of 1.4% is a more reliable indicator of underlying trends in the housing market, rather than the more volatile shifts that can occur within the monthly statistics.


According to the index, house prices increased by 9.2% year-on-year from May 2015, however the rate of growth remains unchanged from April 2016, following a spike of 10.1% year-on-year growth in March ahead of the new Stamp Duty surcharge being introduced.


Although the annual growth in house prices is at its lowest level since November 2015, the perennial undersupply within the UK’s housing market and increase in demand are likely to continue driving up property prices, with a recent projection estimating that the average house price in England is set to reach £500,000 by 2030.


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