The mortgage lender’s latest data shows over the last year house prices grew by 1.5% compared to 1.1% annual growth in April.
Halifax said the North West of England experienced the highest house price increases of any nation or region in the UK. Here prices grew by 3.8% over the year to May meaning a typical property in the region was now £232,258.
Amanda Bryden, head of mortgages, Halifax, said: “Market activity remained resilient throughout the spring months, supported by strong nominal wage growth and some evidence of an improvement in confidence about the economic outlook.
“This has been reflected in a broadly stable picture in terms of property price movements, with the average cost of a property little changed over the last three months.
“A period of relative stability in both house prices and interest rates should give a degree of confidence to both buyers and sellers. While homebuyers and those remortgaging will continue to respond to changes in borrowing costs, set against a backdrop of a limited supply of available properties, the market is unlikely to see huge fluctuations in the near term.”
The nation with the biggest house price increase was Northern Ireland where strong annual growth pushed price up by 3.2% annually in May.
Eastern England recorded the largest decline in annual growth across the UK. House prices there now average £329,853, down 0.8% in the year to May.
Karen Noye, mortgage expert at Quilter, said today’s data showed house prices were ‘stable’. She added: “Broader economic trends are shaping consumer appetite, which in turn are driving this stability but lack of growth.
“The modest drop still points a resilient housing market and there are several factors contributing to this. Wages have been rising steadily, with average pay increasing by around 6%.
“This coupled with lower inflation, has boosted consumer confidence, making buyers feel more financially secure. Additionally, unemployment remains relatively low. Therefore, those who can stomach the new affordability criteria in this higher interest rate environment are keeping the market afloat.”
