The average house price in the UK reached yet another record in May at £261,743, according to the latest Halifax house price index.
This comes as annual house price inflation reaches its strongest level in nearly seven years, with prices having grown 9.5% annually.
All UK regions bar the North East saw acceleration in year-on-year house price inflation last month. The strongest growth was once again recorded in Wales (up 11.9% over the past year), closely followed by the North West and Yorkshire & Humber, both of which posted double-digit annual growth. For Wales and the North West, these are the biggest percentage gains since April 2005 and for Yorkshire & Humber since June 2006.
The South of England, however, is for once lagging somewhat behind the rest of the country. This is especially the case in Greater London, where average prices are still 3.1% higher than a year ago (although already very expensive compared too much of the country) but growing more slowly than the rest of the country. This likely reflects a weakness in city prices given the shift in preference for properties with more space, whilst recent surcharges on stamp duty for non-UK residents and Brexit concerns will also have weighed on the capital’s market.