"May of this year surpassed May 2021’s market performance when we had the added stamp duty incentive."
The average UK house price was £283,000 in May 2022, which is £32,000 higher than this time last year.
House prices increased over the year by 13.1% in England, 14.4% in Wales, 11.2% in Scotland, and 10.4% in Northern Ireland.
Average house prices increased by 1.2% between April and May, compared with an increase of 0.4% during the same period in 2021.
The South West was the region with the highest annual house price growth, with average prices increasing by 16.9%, up from 14.7% in April.
The lowest annual house price growth was in London, where average prices increased by 8.2% over the year to May, up from 6.9% in April.
James Briggs, head of personal finance intermediary sales at Together, commented: “We’re continuing to see rising house prices, primarily because the demand for homes is still outstripping supply. The housing market remains in relatively good health and can be seen as an outlier compared to other areas of the economy, which is beginning to buckle under rising inflation of more than 9%.
“These inflationary pressures are being driven by rising household bills for essentials such as food and fuel, heavily impacting on the cost of living for many. Wages are failing to keep pace with the highest inflation in 40 years, meaning affordability is becoming a major issue for would-be homebuyers.
“This, coupled with the current political uncertainty, is likely to lead to a cooling in the housing market going forwards as buyers hold out for better financial certainty before committing to large purchases, with all signs pointing to a house price slowdown in the coming months.”
Richard Davies, MD of Chestertons, added: “May of this year surpassed May 2021’s market performance when we had the added stamp duty incentive. This indicates that buyer confidence has returned despite economic challenges. With the Bank of England putting up interest rates more than once this year, many house hunters have also established a stronger sense of urgency to buy before further rate hikes.”
