Average home prices in the UK rose by 3.9% year-on-year in May to £269,395, authorities figures confirmed.
The Office for National Statistics (ONS) home worth index revealed that on a month-to-month foundation, common home prices had been 1.1% increased.
The largest annual enhance was in Northern Ireland, the place home prices rose 9.5% to £185,037 over the yr to Q1.
This was adopted by Scotland, with a 6.4% uplift to £191,927, and Wales, the place prices elevated by 5.1% to £209,580.
The smallest yearly change was recorded in England, with a 3.4% uptick to £290,000.
On a month-to-month foundation, nevertheless, England noticed the most important enhance at 1.3%, then Northern Ireland at 1%. There was muted month-to-month progress in Wales, with only a 0.5% rise in prices, whereas home worth progress was flat in Scotland.
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London was the one area in England to see a month-to-month dip in home prices, falling by 1.4% to £565,637. Annually, home prices had been 2.2% increased.
The North East had the strongest month-to-month and annual home worth progress of all English areas, averaging £159,142 in May, representing a month-to-month enhance of two.2% and a yearly rise of 6.3%.
Detached property values rise
The common worth of a indifferent residence was £441,439 in May, 5.4% up because the yr earlier than and the largest enhance in contrast to different property varieties.
There was a 4.6% month-to-month rise in the typical worth of a semi-detached residence, at £270,550, whereas terraced properties had been 3.6% increased in worth at £223,539.
A progress of 1.5% was recorded for studios and maisonettes, averaging £198,262.
First-time patrons paid £226,673 for his or her properties on common in May, a 1.3% month-to-month rise and a 3.6% yearly jump.
For former owner-occupiers, the typical home worth was £331,397, up 0.9% month-to-month and 4.1% yearly.
A readjusting market
Noting that home prices had recovered from the dip in April, and annual progress was nonetheless beneath the two-year excessive seen in March, trade figures mentioned the market was going by a interval of adjustment.
Chris Storey, chief industrial officer at Atom Bank, mentioned: “The influence of the top of the stamp responsibility vacation is obvious to see – whereas home prices proceed to rise on an annual foundation.
“Further home worth progress threatens to make life laborious for many who have been unable to save a sizeable deposit. Questions stay over the effectiveness of measures just like the Lifetime ISA, so the onus is on lenders to ship versatile, commonsense lending [that] retains housing accessible. The modifications to the excessive loan-to-income limits confirmed in yesterday’s Leeds Reforms, in addition to the introduction of a everlasting mortgage assure scheme, ought to make that simpler for lenders to do – it’s now all a query of perspective.”
Nick Leeming, chair of Jackson-Stops, mentioned: “The market is readjusting following an accelerated begin to spring and a shift in purchaser sentiment, as broader financial elements take maintain throughout a sometimes quieter seasonal interval for the market.
“Ultimately, good property priced accurately will promote – however in the present local weather, it’s extra vital than ever for sellers to pay attention to agent recommendation on pricing. Many distributors now getting into the market purchased in very completely different situations and might have to alter their expectations. While there’s a wholesome degree of inventory, the market would profit from extra lively patrons.
“Looking forward, the expectation is that exercise stays regular into the mid-year market. The market nonetheless has a robust contingent of dedicated life-style patrons, which is being supported by the ‘should movers’.”
Darrell Walker, group gross sales director at Chetwood Bank for ModaMortgages and CHL Mortgages for Intermediaries, mentioned: “Another month of annual home worth progress – and a return to month-to-month progress – underlines the resilience in the market, but it surely comes with a caveat. The figures present that whereas prices are edging upwards, momentum has slowed notably since March’s two-year excessive. It’s a reminder that though market sentiment stays broadly constructive, it’s nonetheless considerably fragile.
“Much of this displays how patrons and traders have turn out to be extra selective, looking for alternatives that steadiness short-term worth with long-term potential. It’s a transparent signal that we’re nonetheless in a purchaser’s market, formed by elevated borrowing prices and ongoing uncertainty across the Bank of England’s subsequent transfer.
“But not all patrons are sitting tight and ready for the bottom fee to fall. The newest information demonstrates that prices are rising, and that’s as a result of demand continues to be there, so the lending market should proceed to step up. Bespoke, versatile options might be important in serving to brokers and their shoppers capitalise on rising alternatives. By doing so, lenders might help the market transfer ahead with confidence, no matter what the Bank of England’s subsequent resolution could also be.”
