House prices grow 2.2% in May 

The House Price Index from the Land Registry shows that the average house price of annual inflation rose by 2.2% in the year to May, this is an increase of 1.3%.

In May this year a typical property rose to £285,000 up by £6,000 compared to the same period last year.

In England the average house price rose to £302,000 or 2.2% in the 12 months to May, in Wales there was an increase of 2.4% to £216,000 whilst Scotland saw a rise of £191,000, 2.5%.

Lomond CEO, Ed Phillips, said, “Sold prices have continued to climb in recent months despite the fact that mortgage rates are yet to come down.

“Now that the dust has settled on both the general election and England’s Euros ambitions, both of which have acted as distractions to buyers and sellers, we expect the market will now pick up the pace as we enter what is traditionally the busiest time of year.

“This market momentum is only likely to accelerate when a cut to interest rates does materialise and this is very much a case of when, not if.”

Director of Benham and Reeves, Marc von Grundherr, said, “Despite the brief period of political uncertainty spurred by a snap election, we’ve seen little deviation from both buyers and sellers with respect to their property transaction plans and this has ensured that positive house price growth has been maintained.

“While higher mortgage rates continue to restrict buyer purchasing power at present, it’s only a matter of time before interest rates are cut. When this does happen, we expect it to act as a significant shot in the arm to the UK property market and the slow but steady performance of recent months should giveaway to an altogether more active market landscape and a stronger rate of house price appreciation.”

CEO of Yopa, Verona Frankish, added, “House prices have continued to creep up in recent months which demonstrates that market confidence has been building, but it’s fair to say that we’re currently witnessing the calm before the storm.

“There’s a great deal of pent up demand on the side of buyers at present and whilst some of this will now be released post-election, we anticipate that the real surge in market activity will come once interest rates start to ease.”