UK residential property values growth continues to slow, according to the most recent figures released by the Office for National Statistics.
However, the cost of the average property in Britain increased by 4.7% in the year to May, though this is down from the 5.3% recorded in the twelve months to April.
Ups and Downs
The average price of a property in the UK stood at £221,000 in May, a rise of around £10,000 year-on-year. England saw the largest increases, with growth of around 5%.
Data from the ONS report indicates that the average price of a residential property by UK country currently stands at:
- England – £238,000 – 5% rise
- Wales – £150,000 – 3.8% rise
- Scotland – £143,000 – 3.5% rise
- Northern Ireland – £124,000 – 4.3% rise
By regional, the largest level of capital growth was recorded in the East of England, where the average price of a property rose by 7.5%. This was just marginally ahead of the East Midlands, where property values increased by 7.2%.
Doug Crawford, CEO of My Home Move, noted: ‘The 4.7% annual house price growth for May shows that, despite the slight slowdown, the housing market is still simmering away nicely. Even though the overall growth rate has fallen, for first-time buyers the slower rate of house price growth will be welcome, particularly with inflation running ahead of wages for many.’
‘However, the headline figure masks a lot of regional variation, with price growth particularly strong in the East of England and the East Midlands but more sluggish in London. There is a complicated cocktail of house price growth, inflation and wage growth that varies significantly through the regions, which means buyers are having very different experiences of the housing market depending on where they are buying. Our recent research found that average deposits climbed £6,000 in the last year, with increases in some regions of over 30%,’ Crawford added.