The average UK house price fell by £1,150 in May, marking a 0.4% monthly decline, according to the latest Halifax House Price Index.
Despite the dip, property values remain £7,000 higher than a year ago, with annual house price growth easing to 2.5%, down from 3.2% in April. The average home now stands at £296,648, Halifax reported.
The figures contrast with Nationwide Building Society’s index, which recorded a 0.5% rise in property prices between April and May, following a 0.6% drop the previous month — highlighting divergent trends in the housing market.
Amanda Bryden, Head of Mortgages at Halifax, commented: “House prices dipped by 0.4% in May after a modest gain in April. Over the last year, property values have risen by over £7,000, but price movements have been minimal overall — suggesting a broadly stable market.”
Bryden also noted that the spring surge in activity, partly fuelled by stamp duty changes, has now subsided:
“Since the start of the year, prices are down by just 0.2%. While affordability remains tight, lower mortgage rates and rising wages continue to support buyer confidence.”
The easing of stamp duty relief in April triggered a rush of transactions before the deadline. According to HMRC, 64,680 homes were sold in April, a stark 64% drop from March’s 177,440 sales.
Tom Bill, Head of UK Residential Research at Knight Frank, said the market is adjusting: “Demand was pulled forward earlier this year due to the stamp duty cut-off. Now, with more properties on the market, buyers have greater choice, which is putting downward pressure on prices.”
Halifax’s regional data revealed that Scotland, Wales and Northern Ireland are currently outperforming most English regions in terms of price growth.
Meanwhile, London recorded just a 1.2% annual increase, though it remains the UK’s most expensive property market, with the average home priced at £542,017.
On mortgage trends, Mark Harris, CEO of SPF Private Clients, added: “Fixed-rate mortgages are creeping up again in line with swap rates. But thanks to recent changes in lending criteria and stress tests from major banks like Nationwide and NatWest, many buyers now qualify for significantly higher borrowing amounts.”
