"Whilst the market may seem subdued, we should welcome the fact that every region in the UK is still growing and that the London market seems to be shaking off its malaise."
The positive performance in May means the market has narrowly avoided a full year of slowing house price growth and every region in the UK now shows positive annual price growth for the last 12 months.
Additionally, the data shows that London and the South East are no longer a brake on the market. Taking these two regions out of the equation, the growth rate is lower at 2.1 %, reversing the trend of most of last year.
This is partly due to a change in methodology, which better captures sales of new build properties. These tend to cost more than existing homes and have a particularly strong impact on the average price in London. The change also reflects a recovery in the capital which has strengthened after months of declines – even if transaction levels remain substantially lower than last year.
London is showing average annual growth higher than five regions in the UK (including the South East) and equal to the West Midlands (2.9%), putting it mid-table in England and Wales in terms of growth.
Despite more buoyant house prices, transactions remain 6% lower so far in 2018 compared to the first five months of 2017.
Oliver Blake, managing director of Your Move and Reeds Rains, said: “Whilst the market may seem subdued, we should welcome the fact that every region in the UK is still growing and that the London market seems to be shaking off its malaise.”
