UK house prices increased at the fastest pace in nearly seven years in May driven by the easing of national lockdown restrictions and the gradual reopening of the housing market, data from Lloyds Bank subsidiary Halifax and IHS Markit showed on Monday.

House prices grew 9.5 percent year-on-year in May, following April’s 8.2 percent rise. But this was slower than the 10 percent increase expected by economists.

On a monthly basis, house price growth eased to 1.3 percent in May from 1.5 percent in April. Economists had forecast prices to climb 1.2 percent.

Average UK property prices rose to a record GBP 261,743 in May.

The current strength in house prices points to a deeper and long-lasting change as buyer preferences shift in anticipation of new, post-pandemic lifestyles – as greater demand for larger properties with more space might warrant an increased willingness to spend a higher proportion of income on housing, Russell Galley, Managing Director at Halifax, said.

These trends, coupled with growing confidence in economic activity recovery if restrictions continue to be eased, are likely to support house prices for some time to come, particularly given the continued shortage of properties for sale, Galley added.

The material has been provided by InstaForex Company – www.instaforex.com

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