UK house prices continue to stagnate in May, according to newly released data from Halifax.
In the year to May house price inflation fell to 3.3 percent, down from 3.8 percent in the year to April. According to the figures, this a four-year low as the property market continues to feel the squeeze.
Back in May, Halifax housing economist Martin Ellis said of the marked downturn trend in the market:
“Housing demand appears to have been curbed in recent months due to a deterioration in housing affordability driven by the sustained period of rapid house price growth during 2014-16.”
He added: “Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may also be constraining the demand for homes.”
However, Martin Ellis of the Halifax suggested that there may be some improvement in the upcoming months.
“The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, is likely to support house price levels over the coming months,” he said.
This follows similar findings by the Office of National Statistics (ONS), back in May. The ONS documented a sharp slowdown in particular across the London property market, house prices grew 1.5 percent in the year to the end of March.
This marks a significant downturn from a year ago, when property across the capital rose by nearly 15 percent year-on-year.
Nevertheless, property in London continues to show a marked discrepancy with the rest of the U.K, with the average house price reaching £581,825, well ahead of the second highest average for the South-West of £373,915.
Overall, March house prices were lower in every region of the UK compared with the previous month except for Wales (up 1.4 percent) and the West Midlands (up 0.3 percent).
Across the UK as a whole, the ONS said house prices were down 0.6 percent compared with February, with the average cost of a house in the UK at £215,848.