House prices in the United Kingdom declined by 0.4% in May, according to the latest Halifax House Price Index report released on Friday. This marks a reversal from the 0.3% monthly gain recorded in April. The average UK house price now stands at £296,648, and prices have declined in three of the last five months.
On an annual basis, house prices rose by 2.5%, but the pace of growth appears to be losing momentum. Over the three months leading up to May, prices dropped by 0.3% compared to the previous three-month period.
Amanda Bryden, Head of Mortgages at Halifax, noted, “These small monthly movements point to a housing market that has remained largely stable, with average prices down by just -0.2% since the start of the year. The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty.”
The report indicates a patchy recovery in the UK property market following the end of the stamp duty tax break. While overall conditions remain stable, the near-term outlook for housing remains cautious, with lingering affordability pressures and interest rate uncertainty continuing to weigh on buyer sentiments.
