"Increasing employment and wage inflation continued to support house price growth in May, offsetting the previous month's fall."
The new UK House Price Index (a merger of the Land Registry and ONS HPIs) shows an annual price increase of 8.1% which takes the average property value in the UK to £211,230.
However the index says that after UK home sales fell by 42.3% in April to their lowest level since May 2013, prices have "only recovered slightly in May".
London once again experienced the greatest increase in its average property value over the last 12 months with a movement of 13.6%.
The North East experienced the greatest monthly growth with an increase of 2.1%, but the lowest annual price growth with an increase of 3.2%.
The North West saw the most significant monthly price fall with a movement of -0.3%
John Goodall, CEO and co-founder of Landbay, commented: "Despite demand cooling following the introduction of stamp duty changes to the buy-to-let market in April, an ongoing period of low interest rates, increasing employment and wage inflation continued to support house price growth in May, offsetting the previous month's fall. Looking ahead, we're yet to see the long term effects of Brexit on prices, but what is clear is that a lack of housing supply will remain a crucial issue - Theresa May's new government must now commit to further housebuilding pledges and recognise the increasingly important role the private rented sector plays in the housing mix."
