House prices remained resilient in May, edging down a modest 0.1%, according to Halifax,with lower inflation combined with strong wage growth helping boost consumer confidence.
The average property price in the UK stood at £288,688 last month, the bank’s latest House Price Index shows, with prices up 1.5% over the year.
Amanda Bryden, head of mortgages at 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.”
North West sees strongest growth
House prices in the North West grew 3.8% in the year to May, making it the strongest performing region in the UK. The average price of a property there now stands at £232,258.
Northern Ireland also saw strong growth, with property prices up 3.2% on an annual basis. Property prices in Scotland and Wales also increased, rising by 1.9% and 0.7% respectively compared to last year, to reach £204,952 in Scotland and£219,483 in Wales.
The region which saw the sharpest decline in annual growth was Eastern England, which saw prices nudge downwards by 0.8% in May. The average price of a property in this region is now £329,853.
The capital continues to have the highest house prices in the UK, even though they only rose marginally by 0.2% compared to last year. The average price of a property in London currently stands at £536,821, more than double the price of the average property in the North East.
