The data revealed that across the UK, average house prices were up by 1.2% in the year to May, down from 1.5% in April. The average house price in England increased by 1.0% over the year to May, down from 1.3% in April, while growth in Wales dipped from 5.3% to 3.0%. Conversely, house prices in Scotland increased by 2.8% in the year, up from 1.7% in the year to April 2019.
The North West was the English region with the highest annual house price growth, with annual prices increasing by 3.4%, followed by the West Midlands, with prices increasing by 2.7%.
Gareth Lewis, commercial director at MT Finance, said: "It’s the same story to a certain extent because if we are going to see price increases, we need an uptick in transactional volumes. While transactions are at a subdued level, we won't get that growth stimulus.
We are unlikely to see any significant change to property prices unless the new prime minister makes a significant change to stamp duty which is a big blocker to those buying second homes or buy-to-lets."
Nick Leeming, Chairman of Jackson-Stops, comments: “Today’s data shows little indication that a spring bounce occurred in May for many regions across the country, with areas such as the South East (0.6%) and East Midlands (0.4%) showing marginal uplifts in price on the year. However, it is full steam ahead for prices in the North West, with the West Midlands also continuing to perform well.
As we move into the summer months, we should start to see an influx of coastal homes come to the market, which often don’t remain available for long – particularly if they are located on the beach front. Our latest research with Zoopla found that a property by the coast costs on average £72,424 more than the average UK home of £229,431. This means that as we start to see more coastal transactions, well-known seaside regions such as the South West should see average prices rise.
In just a matter of days we will also know the outcome of the Tory leadership contest. If front runner Boris is to succeed, we could soon see stamp duty liabilities switch from the house buyer to the seller. This could indeed spark a number of today’s buyers to sit on their hands while they wait to see whether these proposals become a reality or remain a pipedream. However, for those looking to sell, now represents a good time to put your home on the market. With stock still fairly limited, there is strong competition from buyers looking for well-priced and high-quality homes.”
Lucy Pendleton, founder and director of James Pendleton, had this to say: “These figures, which show a slight uptick in house prices, are a little behind the curve, as they look at prices in May, just after the EU had agreed to extend the Brexit deadline.
And while Brexit continues to hang over the property market like a dark, foreboding cloud, moving the EU exit date to 31st October has at least allowed the sun to shine on the London market momentarily. This six month extension has given buyers and sellers a large enough window of opportunity to proceed and complete a sale or purchase, while there is a level of economic stability.
People have been vocal with their frustrations, that the Brexit can being continually kicked down the road has stopped them getting on with their lives, and that includes delaying a house move or purchase. The extended period of Brexit limbo has immediately eased that frustration and activity has noticeably picked up over the past couple of months.
More importantly, many more buyers and sellers are showing real commitment and intent to complete transactions, which is something we haven't seen in a while.
That could all change next week when we find out who the next Prime Minister will be, and Brexit hyperbole is ratcheted up again; but for the time being it feels like buyers and sellers are making hay while the sun shines."