Average, house prices increased by 0.1% month on month in May and by 1.2% year on year, which makes the average property in the UK valued at £229,431, the latest official figures show.
A breakdown of the figures published by the Office for National Statistics (ONS) shows that prices increased by 0.1% month on month and by 1% on an annual basis to £245,817, but the market was weaker in England, particularly London.
The South West experienced the greatest monthly price rise, up by 1.2%, while London saw the most significant monthly price fall, down by 2.5%. The North West experienced the greatest annual price rise, up by 3.4% and London saw the largest annual price fall, down by 4.4%
London shows, on average, house prices have fallen by 2.5% since April 2019. An annual price fall of 4.4% takes the average property value to £457,471.
In Wales average, house prices have fallen by 1.4% since April 2019 but they are still up by 3% year on year with an average property value of £159,428.
Market was stronger in Scotland. Prices increased by 1.2% month on month and by 2.8% year on year, taking the average price of a home to £152,801.
Dilpreet Bhagrath, mortgage expert for online mortgage broker Trussle, pointed out that London has seen the biggest fall in house prices in a decade and it’s likely that political and economic uncertainty will have impacted growth. ‘However, for those looking to buy in the capital, the slowdown in prices will be a welcome relief,’ Bhagrath said.
While the figures suggest that house price growth was subdued in England, Sam Mitchell, chief executive officer of online estate agent Housesimple, said that the figures so not tell the whole story.
‘The latest figures expose significant variations in regions across the country with strong growth still seen in certain areas. London’s price fall has plagued the UK average partly due to uncertainty but mainly because of the punitive stamp duty regime, while slowdowns in the South and East of England over the past three years have also taken their toll,’ he explained.
‘Yet economic factors that underpin the property market are looking strong. Plus, the housing market is still showing sturdier than expected signs of resilience amid political uncertainty. Low unemployment and historically low interest rates are leading to high demand from buyers supporting house price growth, particularly in the North West and West Midlands where prices soared to new heights in May,’ he pointed out.
‘Overall, buyers are still coming to the market in their numbers, with separate figures for May showing that lending for house purchases was at its highest level in May since June 2016 which was just after the referendum took place. Buyer confidence should be music to the ears of prospective sellers. Many might have been waiting for Brexit clarity before selling, but understandably their patience, and that of buyers, is now wearing thin,’ he added.
