UK house prices increase by 9.2% year-on-year

UK house prices increase by 9.2% year-on-year

The UK property market outperformed forecasts, with house prices rising by 0.6% over the month of May and over 9% year-on-year.

Summary:

  • Property prices across the UK increased by 0.6% in May, twice the rise that was forecasted
  • Investors have earned £1,268 on each property over the last month and over £17,000 over the last 12 months
  • With demand still overwhelming supply, the UK property market can expect to see house values continue to rise steadily

Residential property prices in the UK rose by 0.6% in May, twice the rate forecast.

The average home was worth £213,472 in the three months to May, according to the Halifax house price index, 9.2% more than the corresponding period last year, fuelled by the continued supply-demand imbalance in the market.

Martin Ellis, Housing Economist at Halifax, said: “Low interest rates, increasing employment and rising real earnings continue to support housing demand. The strength of demand, combined with very low supply, is causing house prices to rise at a brisk pace in quarterly and annual terms.”

Property prices have increased by an average of £1,268 over the last month and by £17,043 in the last year.

Demand outpacing supply has seen property prices within the UK continue to rise year-on-year, with a 251% average national increase in house value over the past two decades.

With the government’s goal of building 200,000 new homes a year looking unlikely to be met, property prices are set to continue on an upward trajectory.

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