House Prices Rise for 6th Consecutive Month in UK Property Market

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UK Property Prices Up 1.5% Year-on-Year

Halifax recently published its latest House Price Index, revealing how property prices performed during May.

According to Halifax data, the average UK house price was £288,688. While this constitutes a very slight monthly decline of -0.1% (£170 in cash terms), this is the sixth consecutive annual rise recorded. Property prices have increased for six months straight, suggesting stability and resilience in the market. The annual growth rate in May was 1.5%, up from 1.1% in April.

Tracking house price growth and market trends, especially at a regional level, is important research for those looking to invest in buy-to-let property.

Learn More: Find out more about UK property investment hotspots, such as buy-to-let properties for sale in London, property investments in Manchester, or property developments in Liverpool.

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North West Leads UK Price Growth

Halifax’s research has shown that the North West was the top-performing nation or region in the UK last month, with annual price growth of 3.8%. The average price of a property in this region is now £232,258.

Northern Ireland also showed strong growth of 3.2% in May, as did Scotland, with an annual rise of 1.9%.

Eastern England was the worst-performing region, with an annual dip of -0.8% in May. London is still the most expensive region to buy property, with an average price of £536,821, up slightly from last year by 0.2%.

Further Reading: Learn about different types of property investment, such as serviced accommodation or off-plan property for sale.

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Market Activity Resilient During Spring Months

Wider market housing activity from other sources is also included in Halifax’s report, showing promising signs of recovery. According to HMRC monthly property transaction data, UK home sales increased in April compared to the month before. Seasonally adjusted residential transactions totalled 90,430, up by 4.6% on March’s number. Year-on-year transactions were 9.8% higher (SA).

Bank of England data shows the number of mortgages approved to finance house purchases was up annually by 25.8%

Amanda Bryden, Head of Mortgages, 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.

“A period of relative stability in both house prices and interest rates should give a degree of confidence to both buyers and sellers. While homebuyers 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.”

To find out more about the UK property market, take a look at our buy-to-let area guides covering topics such as available investment property in Hartlepool and available investment property in Maidstone.