Average house prices rise for eleventh consecutive month: Halifax
This is the eleventh consecutive monthly rise and despite a dramatic increase in the cost of living, house price growth remains in double-digit figures, according to data released by Halifax.
Average house prices increased by 1.0% in May to set a new record price of £289,099.
Northern Ireland topped the table again this month for annual house price inflation, seeing prices rise by 15.2%, equating to an average of £185,386.
The South West of England also recorded a strong rate of annual growth at 14.5%, with an average property cost of £305,173, alongside Wales at 13.7%, where a home is now a record of £216,120.
Overall, nine regions of the UK registered double-digit annual inflation, with only Yorkshire and the Humber, Scotland and London in single figures. Nonetheless, buying a home in the capital today would still require
£541,942, on average.
In Scotland, growth continues to underperform relative to the UK average, with annual inflation at 8.3%. A home in the country now costs an average of £198,288.
A decade of house price growth
Over the past decade, the cost of a home has risen by 74%, or by £123,016. The strongest inflation has been in London (84.2%), followed by the East of England (84.0%) and the East Midlands (82.1%). In cash terms, London house-hunters need £247,638 more than those looking ten years ago, whereas those in the East of England need £153,930 and the East Midlands £108,116.
The relative underperformance - compared to the UK average - of London in 2022 is in stark contrast to ten years prior. In May 2012, the capital was performing better than anywhere else in the UK, with annual house price inflation of 4%. Overall, the South was leading a recovery in property prices following the recession of 2008 and 2009, with the South East (2.5%) and East of England (1.7%) the next best performers.
In some regions, the picture in 2012 contrasts sharply with [the one] today. A decade ago, Northern Ireland had experienced a house price fall of 9.6% year on year, with the Welsh market seeing a drop of 1.2%.
Russell Galley, Managing Director, Halifax, said: “The average cost of buying a home in the UK is up 1%, or £2,857, on last month, and has now risen for eleven consecutive months. Annual growth also remains in double-digits, at 10.5%, although this is the slowest rate of growth seen since the start of the year.
“The average cost to buy a home in the UK is now £289,099, hitting yet another record high. Despite the very real cost of living pressures some people are experiencing, the imbalance between supply and demand for properties remains the primary reason driving the continued climb in house prices.
“For house hunters, the extent of the impact of property price inflation continues to be linked to the type of home they are looking to buy. Compared to May last year, you’d need around £10,000 more to buy a flat, but an additional £50,000 for a detached home. This clearly creates a knock-on effect for those looking to make their first home move, as the rungs on the housing ladder have become increasingly wider.
“However, the housing market has begun to show signs of cooling. Mortgage activity has started to come down and, coupled with the inflationary pressures currently exerted on household budgets, it’s likely activity will start to slow.
“So, there is perhaps one green shoot for prospective purchasers; with overall buying demand down compared to last year, we may be past the peak sellers’ market.”