House prices rise 1.5% in May according to Halifax
Latest Halifax House Price Index – May 2018 headlines ‘Annual House Price Growth Softens to 1.9% in May.’
Halifax revealed that on a quarterly basis, house prices were up just 0.2% in the three months from April to May compared to the previous quarter. Annual inflation rate stood at 1.9%.
On a monthly basis, prices rose by 1.5% in May, partially reversing the 3.1% monthly decline in April. The average house price is now £224,439 according to Halifax.
Russell Gally, Managing Director, Halifax, said:
“House prices grew by 1.5% on a monthly basis, in contrast to a decline seen in April. The month on month figures are more volatile than the quarterly or annual measures. In the three months to May house prices were 0.2% higher than the previous quarter and on an annual basis they are 1.9% higher. Both of these measures have fallen since reaching a recent peak, in the final months of last year.
“These latest price changes reflect a relatively subdued UK housing market. After a sharp rise in January, mortgage approvals have softened in the past three months, whilst both newly agreed sales and new buyer enquiries are showing signs of stabilisation having fallen in recent months.
“The continuing strength of the labour market is supporting house prices. In the three months to March the number of full-time employees increased by 202,000, the biggest rise in three years. We are also seeing pay growth edging up and consumer price inflation falling, and as a result the squeeze on real earnings has started to ease. With interest rates still very low we see mortgage affordability at very manageable levels providing a further underpinning to prices.”
Read the Halifax House Price Index Report – May 2018 published 7th June 2018 in full click here.