According to fresh data released by Halifax, average home prices in the UK skyrocketed 2.5% until May.
However, annual growth rates remained fairly strong, but monthly prices fell 0.4% in May and 0.4% in May. The annual growth rate fell to 2.5% from 3.2% in the previous month.
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The average home price in the UK is currently £296,648.
“Average UK home prices fell by -0.4% in May – a slight increase in April, down by around £1,150. Over the past 12 months, prices have increased by +2.5%, increasing the value of a typical home, now at £296,648, by more than £7,000.”
“These small monthly movements point to the housing market, where average prices have fallen by just -0.2% since the beginning of the year. The market appears to have absorbed a temporary surge in spring activity.
Looking forward to the rest of the year, analysts are seeing housing shortages and cuts from potential banks that England’s banks support prices.
“Today’s data highlights the continued resilience and appeal of the UK real estate sector. Despite inflation and stubborn rise in borrowing costs, we welcome BOE’s recent rate cuts as a hopeful first step in the required mitigation cycle.”
“Obviously there is a significant, significant shortage of home inventory across different price ranges and locations. As a result, the decline in homeowners’ sales could be offset by increased demand from tenants and investors. This is a trend that has not disappeared.”
