Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
UK house prices stabilised in May from the previous month, data from Halifax showed on Wednesday, but saw their first annual decline in over a decade.
According to the mortgage lender, average house prices were flat in May from April, after 0.4% fall in April from March.
On an annual basis, prices fell 1.0% in May, after edging up 0.1% in April. According to Halifax’s data, this marks the first annual decline in house prices since December 2021, when they fell 0.1%.
The typical UK property cost £286,532 in May, compared to £286,662 in April.
‘Given the effectively flat month, the annual decline largely reflects a comparison with strong house prices this time last year, as the market continued to be buoyant heading into the summer,’ said Kim Kinnaird, Halifax Mortgages director.
‘As expected the brief upturn we saw in the housing market in the first quarter of this year has faded, with the impact of higher interest rates gradually feeding through to household budgets, and in particular those with fixed rate mortgage deals coming to an end.’
Average UK property prices have fallen around £3,000 over the past 12 months, and are £7,500 behind their peak from August. However, prices are still £5,000 above the end of 2022, and £25,000 above two years ago, Kinnaird noted.
Copyright 2023 Alliance News Ltd. All Rights Reserved.