Halifax HPI

'Buyers have come to the conclusion that enough is enough'

The average house price in the UK rose by 0.5% month-on-month in May, according to the latest Halifax house price index.

At £237,837, the average house price has risen by 2.5% this quarter, and 5.2% year-on-year.

Tomer Aboody, director at MT Finance, said: “With an annual rise in values based on the same period last year, along with a steady increase in transactions, the housing market is continuing to show signs both of recovery and confidence.

“Buyers have come to the conclusion that enough is enough, and the uncertain conditions which have been facing them could carry on for a while still, so that shouldn't hold them back from getting on the ladder or moving up or down it.

“Fewer homes are on the market since sellers feel that they either don't have to sell when values are still down on 2016 or with the stamp duty levels being so high, they can't afford the step up, so are staying put for now.

“We don’t see this changing anytime soon.”

Lucy Pendleton, founder-director at James Pendleton, stated that this “headstrong performance” proved, once and for all, that when political uncertainty and the availability of cheap credit go head to head, borrowing power wins hands down.

“Rather than the steady trudge that is typical of house price indices, the Halifax figures have felt more like the anticipatory thrill of the roulette wheel recently.

“We’re seeing some big numbers nationally on an annual basis and the index continues to dance about like light playing on water.

“The index may continue to raise a few eyebrows while such volatility remains, as it is throwing up results that aren’t mirrored by other indices.”

Mark Harris, chief executive at SPF Private Clients, added: “The property market is proving to be remarkably stable given the current political shenanigans, which is creating such uncertainty.

“Those who need to get on and move are doing so, with the more realistic sellers able to transact.

“Mortgage rates are still incredibly cheap and don’t look like rising anytime soon, which is further supporting the market.

“For those brave enough to take the plunge, there are some great deals available.”

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