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.
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