House price growth surges to 5.2 per cent in May

According to Halifax’s latest lender index, house prices in the UK have increased by 5.2 per cent in the past 12 months to May 2019.

Figures also indicate that month on month prices increased by 0.5 per cent and on a quarterly basis they were 2.5 per cent higher.

Russell Galley, Managing Director at Halifax has warned that the market is seeing stability as the annual figures should be seen against a backdrop of low growth rates compared with 2018.

“We saw a slight increase in house prices between April and May, but the overall message is one of stability. Despite the ongoing political and economic uncertainty, underlying conditions in the broader economy continue to underpin the housing market, particularly the twin factors of high employment and low-interest rates.

“This is supported by industry-wide figures which suggest no real change in the number of homes being sold month to month, while Bank of England data shows the number of mortgages being approved rose by almost six per cent in April, reversing the softness seen in the previous month.”

Mr Galley added: “While current conditions may help those looking to make their first move onto the property ladder, existing homeowners will doubtless be considering long term house price growth which continues to look subdued in comparison to recent years.

“Looking ahead, we expect the current trend of stability based on high employment and low-interest rates to persist over the coming months, though clearly any downturn in the wider economy would be keenly felt in the housing market.”