UK house prices have fallen by around £1,150 in May, despite property values increasing by more than £7,000 in 2024.
Halifax found that May’s month-on-month price fall followed a 0.3% increase in April, following a slower growth in house prices in the past two months.
Halifax’s latest report contrasts with the findings from Nationwide Building Society’s latest house price index, released on Monday this week.
Nationwide said that property values had increased by 0.5% month-on-month in May, following a 0.6% fall in April.
Amanda Bryden, head of mortgages at Halifax, said: ‘Over the past 12 months, prices have grown by 2.5%, adding just over £7,000 to the value of a typical home, which now stands at £296,648.
‘These small monthly movements point to a housing market that has remained largely stable, with average prices down by just 0.2% since the start of the year.’
Ms Bryden added that the affordability of homes remains a challenge, as house prices are still high compared to incomes.
‘Despite ongoing pressure on household finances and a still uncertain economic backdrop, the housing market has shown resilience – a story we expect to continue in the months ahead,’ she said.
Iain McKenzie, chief executive of the Guild of Property Professionals, said: ‘The key fundamentals supporting home buyers remain strong – low unemployment, rising real earnings, and the continued anticipation of easing borrowing costs in the medium-term.’
The head of sales at estate agent Chestersons, Matt Thompson, pointed out that some home buyers paused their search in April, but quickly resumed in May.
‘Buyer motivation was then boosted further by the Bank of England’s decision to cut interest rates to 4.25%. We expect a busier-than-usual summer market,’ he said.
Halifax pointed out that house price growth across Northern Ireland, Wales and Scotland has been outpacing regions in England.
In London, house prices have increased by just 1.2% year-on-year, the report said.
But Halifax said that London remains the most expensive part of the UK housing market, with the average home priced at £542,017.
Average house prices and annual percentage increase
East Midlands, £244,754, 2.8%
Eastern England, £334,720, 1.6%
London, £542,017, 1.2%
North East, £175,174, 2.0%
North West, £240,823, 3.7%
Northern Ireland, £209,388, 8.6%
Scotland, £214,864, 4.8%
South East, £391,253, 1.8%
South West, £304,519, 1.1%
Wales, £230,405, 4.8%
West Midlands, £260,118, 3.0%
Yorkshire and the Humber, £213,983, 3.7%
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