May house prices dropped very slightly, but annual prices went up, and some mortgage rates have eased. Find out more about what’s going on in the property market.
The housing market has seen some interesting activity lately. Halifax’s House Price Index for May showed that house prices had edged down slightly by 0.1%. This was the same as April, where the drop was also 0.1%. The lender said the average property price was £298,806 in May, down from £299,251 in April.
However, Halifax added that prices remained stable, with annual house price growth easing to 0.5%.
‘Overall activity has held up well,’ said Amanda Bryden, Head of Mortgages at Halifax. ‘Latest industry figures show transaction levels remain relatively stable, suggesting buyers and sellers are still moving.’
Annual increase
Interestingly, figures just released by the Office for National Statistics has shown that average UK house prices went up by 3.8% in the 12 months to April 2026.
The ONS said that prices rose in England by 0.6% to April 2026, while Wales saw prices increase annually by 3.5%. The North East of England showed the highest house price inflation, with an increase of 9.9% in the 12 months to April 2026. In London, prices fell by 2.1% annually.
However, it currently seems to be a buyer’s market. There are reports of ‘plenty of choice’ for buyers and strong competition among sellers. Rightmove said that newly listed homes for sale have seen the biggest annual fall in June so far in the past 14 years. Figures for listed properties from mid-May to early June showed a 0.6% decrease to £376,191.
Early summer impact
The hot weather and economic uncertainty may have affected demand. According to Rightmove, buyer demand fell by 10% during the unusually hot spell in May. Prospective buyers may have been distracted by what was reportedly the hottest May on record. It’s highly likely that many people were too busy sunbathing and hosting barbecues to go out viewing properties!
Looking ahead, borrowing costs and consumer confidence will shape activity in the months to come. Several lenders have slightly reduced their rates this week, while inflation remained at 2.8% in May, despite predictions it would rise to 3%.
We will keep you updated on mortgage rates and changes in the property market.
