UK house prices rose again in May, meaning they have now increased for 11 consecutive months, data from the LSL/Acadata index shows.
According to propertywire.com, values rose by 0.9 per cent last month. Over the course of a year, that means house prices have risen 8.5 per cent in England and Wales – the average home is now worth £21,000 more than it was last year. However, when London is removed from the equation, values only increased by 6.3 per cent, which shows that the capital is still driving growth.
The average property is now worth £266,013, but the market is beginning to cool, especially in the capital. In April, 12 London boroughs saw house prices fall. The City of Westminster recorded the biggest decline at 2.9 per cent and Kensington and Chelsea fell 2.7 per cent, reports thisismoney.co.uk.
David Newnes, director of Reed Rains and Your Move, both of which are owned by LSL Property Services, said that the capital is still in “a league of its own”, as prices there on average have climbed 13.3 per cent.
“This 8.5 per cent rise is the highest annual increase we’ve witnessed since August 2010, when the housing market was edging back from the throes of the financial crisis, and brings average property prices to a new peak,” he explained.
“As the vigorous health of the UK housing market catches international and media attention, all eyes have been on how the government and regulators will react.”