The Land Registry’s May data shows an annual price increase of 8.1% which takes the average property value in the UK to £211,230.
Monthly house prices rose by 1.1% since April 2016 and the monthly index figure for the UK was 110.8.
In England, the May data shows an annual price increase of 8.9% which takes the average property value to £226,807. Monthly house prices rose by 1.0% since April 2016.
Wales shows an annual price increase of 3.6% which takes the average property value to £142,568. Monthly house prices rose by 0.9% since April 2016.
London shows an annual price increase of 13.6% which takes the average property value to £472,163. Monthly house prices rose by 1.5% since April 2016.
The regional data indicates that:
- London experienced the greatest increase in its average property value over the last 12 months with a movement of 13.6%
- the North East experienced the greatest monthly growth with an increase of 2.1%
- the North East saw the lowest annual price growth with an increase of 3.2%
- the North West saw the most significant monthly price fall with a movement of -0.3%
Following a strong increase in sales in the month prior to the stamp duty changes (March 2016), UK home sales fell by 42.3% in April 2016 to their lowest level since May 2013; these have only recovered slightly in May 2016.
Sales during March 2016, the most up-to-date Land Registry figures available, show that:
- the number of completed house sales in England increased by 52% to 102,597 compared with 67,489 in March 2015
- the number of completed house sales in Wales increased by 49% to 5,002 compared with 3,358 in March 2015
- the number of completed house sales in London increased by 60.6% to 14,783 compared with 9,202 in March 2015.
Rob Weaver, director of investments at property crowdfunding platform Property Partner, said: “Scotland and the North East of England seem to have bucked the longer term trend in May. And the stars of the housing market – London and the South East – still performed strongly.
“Housing activity though was relatively mute due partly to a double whammy of tax changes, namely the stamp duty hike for second homes and the cuts to mortgage interest relief.
“However, prices appear to be holding and even increasing in many areas due to the fundamental imbalance in supply and demand.
“Despite a recent slowing down in London, the capital still remains the engine of the housing market in the longer term, showing price rises more than almost double the annual rate of all other regions apart from the South East and East of England.
“There is much bearish commentary post-Brexit but investors must remember that since 1973 there has been no five year period when buy-to-let landlords would have made a negative return when rental income and capital gain are both taken into account.
“Following recent Bank of England announcements on softening monetary policy, it looks likely homeowners mortgage interest payments will remain historically low for much longer than expected. This could help continue to support prices over the next 12 months.”
