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New Government Data Shows H P I Is Up 3.7% In May

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Tuesday July 8, 09:47 AM
House prices up 3.7 percent in May
LONDON (Reuters) - House prices
rose 3.7
percent on a year ago in May, after a
4.9 percent rise in April
, government figures showed on Tuesday.
The Department for Communities and Local Government said the average house price stood at 218,151 pounds in May.

This despite builders on the brink of receivership due to plunging sales and prices, despite a 50% drop in new mortgage lending and despite falling prices from one end of the country to the other. Is this data mean't to reassure the electorate that Gordon is doing a good job and maintaining inflated house prices? IMO, it is reminiscent of Stalin's tractor statistics. Embarassing, to say the least.

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House price growth at 26-month low

7 hours ago

Annual house price growth fell for the seventh month in a row during May to hit a 26-month low, new Government figures showed.

The average cost of a home in the UK dropped by 0.3% during the month to stand at £218,151, according to Communities and Local Government.

The fall, which was driven by a 2.1% slide in the price of detached houses and 1% drop in the cost of bungalows, reduced annual house price growth to 3.7%.

The figures further add to the current run of gloomy news on the property market, with Nationwide Building Society last week saying house prices fell for the eighth month in a row during June.

The group said property values had fallen by 6.3% during the past year - the fastest rate of decline since the 1990s house price crash.

CLG's figures are less bleak, with annual house price inflation still in positive territory.

However, the data is for May, while Nationwide's figures are for June, and the CLG figures tend to lag other indexes, suggesting it will show a further showdown in the months ahead.

Howard Archer, chief UK and European economist at Global Insight, said: "The CLG data do little to dilute the serious concerns over the housing market, even though it shows house prices still rising year-on-year.

"Severe downward pressure on house prices continues to come from very weak housing market activity, elevated affordability pressures on potential house buyers and very tight credit conditions."

Annual house price growth fell in all regions of the country during May except London and the East Midlands, where it picked up only slightly.

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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