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House prices show 3.9pc increase

11:17 05 June 2014

House prices climb 9.5pc in the east

House prices climb 9.5pc in the east

PA Wire/Press Association Images

House prices have recorded their strongest monthly uplift since 2002, with a 3.9% jump taking average values to £184,464, Halifax has reported.

On an annual basis, UK prices rose by 8.7% in May, accelerating on an 8.5% rise seen the previous month.

The month-on-month jump is the highest since a 4.2% increase was recorded in October 2002.

Stephen Noakes, mortgages director at Halifax, said: “Demand is still strong and continues to be supported by a strengthening economic recovery.

“Consumer confidence is being boosted by a rapidly improving labour market and low interest rates, although growth in average earnings still remains weak.

“However, there are signs of a revival in housebuilding which should bring supply and demand into better balance and curb upwards pressure on prices over the medium and longer term.”

Halifax cautioned that monthly movements in house prices can be “volatile”. On a month-on-month basis, house prices had fallen in both March and April, before the strong increase seen in May.

It said that figures showing the quarterly change in property values can be a more reliable indicator of underlying trends in the market.

The quarterly measure showed that house prices in the three months to May were 2.0% higher than in the three months to February.

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1 comment

  • This rise may or may not be true but please remember that the Halifax can report only on the properties that it has actually lent money on and not the housing market generally. If the Halifax introduces a new mortgage product with stricter terms or it instructs its surveyors to ‘down value’ more, then this will have a negative effect on the prices reported – similarly, if they are keen to lend as at present, then their mortgage lending criteria and instructions to their surveyors will encourage a growth in prices. Ultimately, there are far more accurate indexes of what is happening to the property market, both locally and nationally.

    Report this comment

    Norfolk John

    Thursday, June 5, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

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