The UK housing market remains relatively stable, experts say
House prices in the United Kingdom fell in May by 0,1% on a monthly basis, according to Halifax data.
For comparison, a similar decline was recorded in April.
On a quarterly basis, house prices fell by 0,2%.
The annual growth rate of house prices slightly accelerated to 0,5% from 0.4% a month earlier.
The average house price in the United Kingdom was 298 806 GBP, compared to 299 251 GBP in April.
As Amanda Bryden, a Halifax expert, noted, price changes in the UK housing market still reflect uncertainties related to the tense geopolitical situation in the Middle East.
“Despite recent mortgage rate cuts, higher inflation forecasts keep loan costs above the start of the year, which still limits the financial capacity of many buyers and dampens demand,” she said.
“Nonetheless, overall market activity remains at a good level,” she added, pointing to the “fundamental resilience of the UK housing market.”
“The latest industry data indicate that the transaction level remains relatively stable, suggesting that both buyers and sellers are still active. For first-time home buyers, the annual growth is slightly lower at +0,3%,” the report reads.
The data show that house prices still vary significantly by region in the United Kingdom.
“The north sees stronger growth, while the south is a bit calmer,” it was reported.
Northern Ireland still leads in annual price growth, recording the largest six‑month increase of 7,8% to 227 177 GBP.
The average property value in London fell by 1,5% to 534 375 GBP.
At the beginning of June, Nationwide data indicated that UK house prices fell by 0.6% on a monthly basis in May, while rising 1.7% year‑over‑year.
We wrote more about this in the article: House prices suddenly down. First drop this year. “Some weakening of the dynamics was expected.”
Source: Halifax.
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External factors still shape the UK housing market
Amanda Bryden, a Halifax expert, stressed that for many Britons free entry into the property market remains a significant challenge.
“There is an increasing support from lenders, including more flexible credit assessment criteria and a broader range of low‑deposit options,” she said.
“Looking ahead, loan costs and consumer confidence will likely continue to shape activity in the coming months, while property prices should remain essentially stable, with interest rates staying high,” she added.
The Halifax report shows that the UK housing market, like property markets in many other countries, remains under the influence of a range of global factors that affect buyer activity levels.
“The return to sustained price growth depends on improving inflation outlooks and falling mortgage costs,” the summary concluded.
Source: Halifax.
Read also: The housing market slump. Those looking for a home “should know this” – experts say
See also: Properties no longer falling. 40,000 sales contracts were cancelled in the month, apartments linger on the market for 60 days.
Source: Halifax.
