UK house prices increased by 5.7% in the year to May 2015, up from 5.5% in the year to April 2015, according to the ONS House Price Index for May 2015.
The average UK mix-adjusted house price in May 2015 was £274,000.
The pace of annual house price growth increased slightly across the majority of the UK in May 2015, while annual house price increases in England were driven by an annual increase in the East (9.3%) and the South East (8.2%).
London prices increased by 4.7% over the year to May 2015 (up from 4.3% in the year to April 2015).
On a seasonally adjusted basis, average house prices increased by 0.9% between April and May 2015 – compared to an increase of 0.8% in average prices during the same period a year earlier.
In May 2015, prices paid by first-time buyers were 5.1% higher on average than in May 2014. For owner-occupiers (existing owners), prices increased by 5.9% for the same period.
Peter Rollings, CEO of Marsh & Parsons, said: “A few months ago it would have been unthinkable that house prices in London would be rising at a slower rate than the national average. Yet the rates of growth seen in the East and South East have overshadowed London, which was disrupted by the storm of the general election and dampened by talk of a Mansion Tax.
“However, throughout the remainder of May – once the ballot papers were in – growth improved across the country. And perhaps the most revealing indicator is that the 0.9% month-on-month jump is stronger than we experienced a year ago. In the last month, we have seen more and more properties come on to the market, which matches a higher demand from more confident buyers.
“Demand for mortgages is firmly on the up, and as buyers get their finances in order, a new wave of activity will carry prices forward over the summer months.”