UK house prices pick up

Following a slight dip in April, UK house prices showed modest growth in May.

The average house price rose monthly by 0.4% to £264,249 in May, having fallen by 0.4% the previous month. Promisingly, annual growth was also at 1.3%, up from 0.6% in April.

Expert opinion

Robert Gardner, Chief Economist at Nationwide, commented, “The market appears to be showing signs of resilience in the face of ongoing affordability pressures following the rise in longer term interest rates in recent months.”

The UK awaits cuts to Bank Rate

It is uncertain when the cost of borrowing will improve - the earliest that base rate could come down is August, following the Bank of England’s decision to hold it at 5.25% in June. When the first cut does come, it is possible that the UK could see significant house price growth.

Signs of hope

Despite higher mortgage rates, Gardner commented that “Consumer confidence has improved noticeably over the last few months”, reflecting that this is likely due to “solid wage gains and lower inflation.”

Mortgage advice

As the UK housing market continues to fluctuate, we can help you understand what it all means for you, your mortgage and home purchase. Get in touch for advice.

Your home may be repossessed if you do not keep up repayments on your mortgage

¹Nationwide