Buy To Let
House prices up 3.9% in just one month – Halifax
House prices across the UK have risen by 3.9 per cent in a single month, figures from Halifax have shown.
The bank’s latest house price index said the average UK house price in May stood at £184,464, a rise of 3.9 per cent on April’s figure.
Overall, property prices are 8.7 per cent higher than a year ago.
Using a less volatile quarterly comparison, the average price between March and May was 2 per cent up compared to the preceding three months. Halifax said this level of increase had remained steady since June 2013.
“House prices in the three months to May were 2.0 per cent higher than in the three months to February,” Halifax mortgage director Stephen Noakes said.
“The quarter-on-quarter price change is a more reliable indicator of the underlying trend compared to the monthly price movement. Annually prices were 8.7 per cent higher in the three months to May than in the same three months last year.
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“On an annual basis housing demand is still strong and continues to be supported by a strengthening economic recovery. Consumer confidence is being boosted by a rapidly improving labour market and low interest rates, although growth in average earnings still remains weak.
“However, there are signs of a revival in housebuilding which should bring supply and demand into better balance and curb upwards pressure on prices over the medium and longer term.”