Average house prices increase slightly by 0.5% in the month of May. The average UK house price in May 2012 was £160,941 – 0.7% higher than in December 2011.

The Halifax House Price Index (HPI) for May continues the reports that show the current static state of the property market. Key figures are:

  • Average house prices increase slightly by 0.5% in the month of May – in contrast to the significant monthly rises and falls over the preceeding two months (+2.2% and -2.3%)
  • The average UK house price in May 2012 was £160,941 – 0.7% higher than in December 2011.
  • Second successive increase in quarterly change, up 0.8% in the three months to May – in comparison to the preceeding three months
  • Home sales had a sharp fall in April by -18%, demonstrating the affect on the end of the stamp duty holidat for first time buyers.
  • Supply and demand balance has tightened over the recent months, which measure the ratio of house sales to the stock of unsolf properties

Commenting, Martin Ellis, housing economist, said:

“House prices in the three months to May were 0.8% higher than in the previous quarter, marking the second successive increase in this measure of the underlying trend. The more volatile monthly figures showed a 0.5% rise in May following Aprils 2.3% decline.

“Whilst there has been a modest improvement in the trend for house prices recently, the current average UK price is very similar to the levels both a year ago and at the beginning of this year. We expect this situation to continue with prices likely to still be around todays levels at the end of 2012 as the ongoing tough economic environment constrains housing demand.

“Recent monthly house sales figures have clearly been affected by the ending of the stamp duty holiday for first-time buyers in late March. Overall, the trend for sales – like that for prices – appears to be one of broad stability.”

Commenting, Martin Ellis, housing economist, said:
“House prices in the three months to May were 0.8% higher than in the previous quarter, marking the second successive increase in this measure of the underlying trend. The more volatile monthly figures showed a 0.5% rise in May following Aprils 2.3% decline.

“Whilst there has been a modest improvement in the trend for house prices recently, the current average UK price is very similar to the levels both a year ago and at the beginning of this year. We expect this situation to continue with prices likely to still be around todays levels at the end of 2012 as the ongoing tough economic environment constrains housing demand.

“Recent monthly house sales figures have clearly been affected by the ending of the stamp duty holiday for first-time buyers in late March. Overall, the trend for sales – like that for prices – appears to be one of broad stability.”