The House Price Reports for May 2024 showed a responsibly static month with a slant towards the upside.
The Nationwide Report quoted a +0.4% monthly increase / +1.4% annual increase with the heading – ‘Modest rebound in house prices in May as market shows resilience’
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:
“UK house prices increased by 0.4% in May, after taking account of seasonal effects. This resulted in a slight pickup in the annual rate of house price growth to 1.3% in April, from 0.6% the previous month.
On the other hand, the Halifax Report suggested that house prices were static, with a monthly change of -0.1% and an annual change of +1.5%.
Amanda Bryden, Head of Mortgages, Halifax, said:
“UK house prices were largely static in May, edging down slightly by -0.1% or around £170 in cash terms. On an annual basis house prices rose for a sixth consecutive month, up by +1.5% vs +1.1% in April. The average property price now stands at £288,688.
“Market activity remained resilient throughout the spring months, supported by strong nominal wage growth and some evidence of an improvement in confidence about the economic outlook. This has been reflected in a broadly stable picture in terms of property price movements, with the average cost of a property little changed over the last three months.
“A period of relative stability in both house prices and interest rates should give a degree of confidence to both buyers and sellers. While homebuyers and those remortgaging will continue to respond to changes in borrowing costs, set against a backdrop of a limited supply of available properties, the market is unlikely to see huge fluctuations in the near term.”
The latest Rightmove report which focuses on prices, stated that the average sale price of property coming to the market had increased by +0.8% in may. This is an amount of +£2807 with a new record asking price of £375,131.
The latest Hometrack Report, which includes a report on regional areas, states that the annual change in house prices is actually -0.1%. Although it does say “There is a record high supply of homes for sale which shows renewed confidence among sellers, many of whom are also buyers. Greater choice will keep prices in check over 2024. The general election is likely to dampen the number of sales agreed in the run up to summer.”
Our Thoughts
Given that the latest reports suggest a flat month for May, we are still seeing good levels of activity.
Unfortunately, mortgage rates have increased over the last month which was contrary to what many would have expected. This coupled with the Prime Minister’s announcement to call an election, may slow things down over the coming weeks.
However, given a turbulent time over the last 18 months, house prices have remained resilient and there are no indicators that this will change any time soon.
