The UK housing market is showing resilience after prices dipped slightly last month, according to the latest data from Halifax.
The new house price index indicates that the average property price has changed little month-on-month in May.
Figures indicate the average UK house price fell by 0.1 per cent month-on-month or approximately £170 cash terms in May, according to Halifax.
The average property value fell to £288,688, marking a 1.5 per cent increase compared to a year earlier and a 0.1 per cent drop compared to April.
The latest research shows prices jumped in north-western England
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On an annual basis, however, house price inflation rose to +1.5 per cent in May, up from 1.1 per cent in April.
Amanda Bryden, head of mortgages at Halifax, 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.”
Nathan Emerson, CEO at Propertymark, commented: “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 top performing region in the UK was the north-west of England, where house prices grew by 3.8 per cent on an annual basis in May.
Northern Ireland also enjoyed a strong performance last month as the average property price grew by 3.2 per cent.
Conversely, house prices in Eastern England dropped by 0.2 per cent, with the average house sale fetching £329,853.
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House Price Changes:
Performance by region:
- North West: Average house price: £232,258 – Annual growth of +3.8 per cent
- Northern Ireland: Average house price: £184,486 – Annual growth of +3.2 per cent
- Scotland: Average house price: £204,952 – Annual growth of +1.9 per cent
- Wales: Average house price: £329,853 – Annual growth: + 0.7 per cent
- Eastern England: Average price £329,853 – Decline of – 0.8 per cent
- London: Slight increase of +0.2 per cent – Average price £536,821.
The figures confirmed that the housing market remains strong despite the Bank of England’s choice not to cut interest rates.
What’s more, a hike in mortgage lending rates in the first quarter of the year slowed down the housing market.