The average price of a property in the UK rose 8.1% in the year to May, new figures show.
The data from the Office of National Statistics revealed that the monthly price change for a property in the UK went up 1.1% to £211,230 in May despite uncertainty surrounding the EU referendum and April’s stamp duty increase.
House purchases surged in March as buyers brought forward transactions to beat the 1 April stamp duty deadline on second homes.
There was then a cooling off in the market because of the rush and partly as a result buyers putting off transactions as they awaited the outcome of the referendum.
The figures also show that house prices for first-time buyers in the UK have risen by 8.3%. The average house price in the UK was £211,000, and for first-time buyers it was £179,000.
The new UK House Price Index replaces the previous House Price Indices separately published by the ONS and Land Registry.
Surprisingly, the North East was the region with the greatest monthly growth of 2.1%, even outperforming London which saw house prices rise 1.5%.
England recorded the strongest annual house price growth in the UK of 8.9% to £226,807.
Wales saw house prices increase by 3.6% over the last 12 months to stand at £142,568. In Scotland, the average price increased by 2.8% over the year to hit £141,142. The average price in Northern Ireland is currently £117,524.
London was once again the region with the highest average house price at £472,163, followed by the South East at £306,037. The region with lowest average price was the North East at £124,466.
Bonny Hedderly, managing director at Deposit Doctor, said: “After a hectic first quarter, May saw the market returning to business as usual, with a strong buyer appetite seemingly unhindered by the upcoming referendum.
“Whilst we may now see the market entering a period of uncertainty in the coming months as the dust settles in the wake of the recent referendum result, the fundamentals of the market remain strong with low interest rates, increasing wages and high rates of employment supporting the demand for housing. However, there can be no doubt that during these turbulent times, homebuyers are likely to be even more nervous about the financial commitment being made.”
