UK house prices rise faster than expected

UK house prices rise faster than expected

British house prices saw a faster increase than expected in May. This new rise proves to be a rebound from a dip in April caused by new tax regulations, Halifax’s house price index revealed.

Halifax stated that house prices went up by 0.6% in May, double the rate originally forecast by a Reuter’s poll of economists and massively reversing the 0.8% dip experienced in April.

“The strength of demand, combined with very low supply, is causing house prices to rise at a brisk pace,” Halifax housing economist Martin Ellis said.

In the three months to May, prices were 9.2% higher than a year earlier. That’s the same rate of increase as in April and the slowest since November.

April’s mortgage data from the Bank of England showed the weakest net lending growth since the depth of the euro zone debt crisis in 2012, and the sharpest fall in mortgage approvals in 2 years.

House price data collect by Halifax always shows a slightly faster rate of house price rises than other indexes. Rival mortgage lender Nationwide revealed a 4.7% annual rise in prices for May.

The Royal Institution of Chartered Surveyors stated that last month constituted the biggest fall in demand from buyers since 2008. At the same time, Halifax’s Ellis said he expected price rises to slow later in the year as price rises continue to outpace the growth of earnings.

“Increasing affordability issues, caused by a sustained period of higher-than-earnings house price growth, should curb housing demand and result in some slowdown in house price growth as the year progresses,” he said.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT