House prices rise by 0.5% as momentum continues: UK HPI

House prices increased by 0.5% between April and May, with the average UK house price now standing at £220,713, according to the latest UK House Price Index from the ONS and the Land Registry.

Related topics:  Finance News
Rozi Jones
18th July 2017
house growth graph this is actually the green one
"These figures are interesting because they show the market demonstrating resilience at a time of turmoil in the political and economic worlds"

UK house prices grew by 4.7% in the year to May 2017, 0.6 percentage points lower than in the year to April 2017.

However the Index says that while the annual growth rate has slowed since mid-2016 it has remained broadly around 5% during 2017.

Looking closer at the regional level of the UK, the East of England showed the highest annual growth, with prices increasing by 7.5% in the year to May 2017. This was followed by the East Midlands at 7.2%. The lowest annual growth was in the North East, where prices increased by 1.6% over the year, followed by London at 3.0%.

Jeremy Leaf, north London estate agent and former RICS residential chairman, said: "These figures are interesting because they show the market demonstrating resilience at a time of turmoil in the political and economic worlds and shrugging off concerns about possible falls in prices. Transaction numbers remain broadly in line with what we would expect after the impact of the stamp duty change 12 months ago.

"On the ground, we are seeing once again buyers and sellers getting on with their moves albeit negotiating much harder.

"Looking forward, we don’t expect the situation to change and in fact some may be encouraged by the fall in inflation, easing the prospects for household finances and affordability."

Paul Smith, CEO of haart estate agents, added: “This month’s house price data shows no evidence of a housing crash, or even prices that are losing momentum.

“Today’s data also gives the first full picture of how the regional outlook has changed following the introduction of a Stamp Duty surcharge. This time last year London was leading the way with almost 14% annual growth. Today we see it trailing behind the rest of the country, bar the North East, with just 3% growth. Although this may come as welcome news to those looking to buy in the capital, it does show the extreme effect the Government’s move has had on London’s economy, and on the rental market. Our latest monitor shows the Landlord registrations are down 52% on the year in the capital. And there is no doubt that this is due to the Stamp Duty change.”

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