UK House Prices ‘Static’ in May, But Stability Should Instil Confidence – Halifax

Halifax said May 2024 house prices were “static,” edging slightly lower from April. In its House Price Index, Halifax revealed average house prices were stable during the month, down just -0.1% to £288,688, from £288,862 the previous month.

The annual rate of house price growth saw a positive upswing of 1.5% last month, up from 1.1% in April, with the North West emerging as a beacon of strong price growth in the UK.

“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,” says Amanda Bryden, Head of Mortgages at Halifax.

Housebuilder Bellway echoed that sentiment in its trading update on Friday, stating that it saw stronger trading through the spring selling season.

Bryden emphasises that a period of relative stability in both house prices and interest rates should instill a sense of security and confidence in 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,” adds Bryden.

In the North West, the strongest performing region, house prices grew 3.8% on an annual basis in May, with the average price of a property in the region now £232,258.

Halifax also noted that Northern Ireland continues to show strong growth, up 3.2% in May, down slightly from the 3.3% growth in April.

As expected, London continues to have the most expensive average price tag at £536,821, up 0.2% compared to last year.