Average cost of property little changed over the last three months, says Halifax

The average UK house price dipped slightly by 0.1% month-on-month, or about £170 in cash terms this May, according to the latest index.

Halifax reported that the typical property value now stands at £288,688, marking a 1.5% increase compared to the same period last year. Amanda Bryden, head of mortgages at Halifax, commented: “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.”

She added: “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. A period of relative stability in both house prices and interest rates should give a degree of confidence to both buyers and sellers.

“While home buyers and those remortgaging will continue to respond to changes in borrowing costs, set against a backdrop of a limited supply of available properties, the market is unlikely to see huge fluctuations in the near term.”

Nathan Emerson, chief executive at Propertymark, noted: “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.”

Myles Moloney, area sales manager at Chase Buchanan, observed: “Pricing remained stable, with well-presented family homes being particularly popular and in many cases receiving multiple offers. As rent levels continue to hold, or in some areas likely increase further over the coming months, we expect to see more aspiring homeowners beginning their property search which will fuel a competitive property market this summer.”

According to Zoopla’s Friday report, there was an annual rental price inflation for new lets at 6.6% in April, indicating the average rent had increased by £80-per-month compared with a year previous. Despite a softened rental demand over the past year there are still 15 people vying for every home for rent – that’s more than double the pre-pandemic average of six people, Zoopla disclosed.

Purplebricks’ Chief Executive Sam Mitchell said: “We are seeing the property market continue on its road to recovery, with good stock coming to market and a sharp increase in viewings.” Foxtons Chief Executive, Guy Gittins, confirmed that the estate agent has “seen no inkling of election related jitters on either the side of buyers or sellers”.

North London based estate agent Jeremy Leaf said: “In our offices we have seen buyers and sellers gain confidence, not just from the strong employment figures but the expected southerly direction of travel for inflation and mortgage rates, which is outweighing uncertainty surrounding the election.”

Meanwhile, Yopas Chief Executive Verona Frankish, anticipates that when a Bank of England base rate cut “does materialise, we expect the current rate of house price growth to accelerate”.

Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners advised: “Buyers should remember they can lock in a (mortgage) deal up to six months ahead of the start of their mortgage term, with the option to switch to a better rate should it come along in the meantime.”

Here are the regional house prices and annual changes for May according to Halifax’s most recent three months of approved mortgage transaction data:.

East Midlands – £238,055, downward change of 0.4%.

Eastern England – £329,853, decreasing by 0.8%.

London – £536,821, modest increase of 0.2%.

North East – £172,449, upswing of 1.9%.

North West – £232,258, significant rise of 3.8%.

Northern Ireland – £191,767, an upturn of 3.2%.

Scotland – £204,952, upward trend of 1.9%.

South East – £384,871, slight downturn of 0.2%.

South West – £302,021, marginal climb of 0.4%.

Wales – £219,483, minor increase of 0.7%.

West Midlands – £252,745, small growth of 0.8%.

Yorkshire and the Humber – £206,351, a bit of uptick at 0.9%.