UK house prices rose by 1.1% in May, according to the latest HM Land Registry House Price Index (HPI).
This followed a 2.7% drop between March and April.
On an annual basis, prices were up 3.9%, with the average UK house price now standing at £269,000.
Reaction:
Marc von Grundherr, director of Benham and Reeves:
“The latest sold price data show that the monthly rate of house price growth bounced back in May, following a brief period of decline in the wake of the recent stamp duty deadline.
“This demonstrates that the appetite of the nation’s homebuyers is yet to diminish and they remain motivated to push on with their plans to purchase despite the higher cost of stamp duty when doing so.
“At the same time, the market continues to demonstrate stability and resilience on an annual basis, with house prices remaining higher than they were this time last year, despite the strengthening economic headwinds that we’ve had to contend with.”
Verona Frankish, CEO of Yopa:
“The latest house price figures for May demonstrate a market that is very much on the front foot and ready to build on the momentum gained in recent months, particularly now that the distraction of another stamp duty deadline is behind us.
“This underlying resilience provides a solid platform for future growth, which will only be strengthened by the announcement this week of the Government’s mortgage market reforms.
“By easing mortgage lending criteria, these changes will broaden access to finance, helping to attract more buyers into the market and support continued house price growth over the remainder of the year and beyond.”
Jason Tebb, president of OnTheMarket:
“Although historic, the data shows house values continued to rise on an annual basis in May, with the average property price £10,000 higher than a year ago, even though affordability remains a challenge and is keeping prices in check to an extent.
“The market continues to demonstrate remarkable resilience, assisted by four interest rate reductions since last August.
“These cuts, with the suggestion of more to come, have boosted buyer and seller confidence, increasing activity in the market and benefiting the wider economy.
“The unexpected increase in inflation to 3.6 per cent in June may persuade the Bank to pause with regard to further reductions, although much depends on other economic data such as the jobs market.
“With mortgage lending rules being relaxed to assist buyers with affordability and boost first-time buyer numbers, there is recognition that it is a struggle to get on the housing ladder but only time will tell if these measures are enough to make a real difference.”
