UK House Prices In Surprise Rise In May 2024
UK house prices returned to growth in May after rising by 0.4%, according to Nationwide, as buyers' confidence was buoyed by wage growth and lower inflation.
The average house price reached £264,249 this month, compared to £261,962 in April, the building society said.
Mortgage rates in the UK have been comparatively high because the Bank of England is not forecast to cut interest rates as quickly or as steeply as initially predicted at the beginning of this year.
May's gain reverses a 0.4% drop in the previous month.
Andrew Harvey, senior economist at Nationwide, said: "I think we have been a little surprised actually by the resilience in the market because those affordability pressures have been quite significant."
Over the year to May, house prices rose by 1.3%, said Nationwide. That compares to 0.6% growth in the 12 months to April.
The building society said that consumer confidence had "improved noticeably over the last few months, supported by solid wage gains and lower inflation".
An average two-year fixed rate mortgage is currently 5.92%, according to Moneyfacts, the financial information firm. That compares to 5.83% in April.
The rate on the average five-year fixed mortgage is 5.49%, up from an average of 5.4% last month.