The average house price in the UK is now £255,000
House prices rose in May after falling in April, according to data released by the Office for National Statistics (ONS) on Wednesday.
Average UK house prices rose 10% in the year to May, up from 9.6% and 9.9% in April and March respectively.
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On a month-on-month basis, prices rose 0.9% to £255,000 in May, following a 1.9% fall in the previous month.
Sam Beckett, head of economic statistics at the ONS, said: “House prices rose by 10% in the year to May, continuing the trend seen in recent months. Property prices are lowest in London, with the most growth in the north-west of England.
“After falling in April, UK average house prices rose slightly in the months to May 2021, returning almost back to the UK average house price recorded in March.” It reached a peak price of £256,000. ”
Sundeep Patel, sales director at specialist finance company Together, provided additional background and outlook on the future housing market.
“House prices rose 0.9% month-on-month in May this year.The average house price in the UK now stands at £255,000, but now that the first phase of easing due to the stamp duty holiday extension has ended, the scheme will be phased out. We will begin to see whether the termination will sustain price increases,” Patel said.
“The Government’s tax cuts have certainly been a successful initiative in supporting the housing market through the pandemic, with hopeful buyers rising to the occasion and making the most of the stamp duty holiday and paying off their incomes relative to average incomes. Home prices have soared, but especially as we learn to live with the pandemic, as analysts have already predicted. The rate of new property purchases is likely to slow if the unemployment rate rises in 2020.Furthermore, with the formal approval of ‘Freedom Day’, consumers will be able to use their lockdown savings for the rest of the summer. Housing inquiries and demand may be temporarily put on hold while decisions are made to prioritize staycations and travel. ”
