Price of average house up by £7,000 in a year

TYPICAL house prices have grown by more than £7,000 in the past year, says Britain’s biggest mortgage lender.

The market has defied the gloom of Remainers over the Brexit referendum.

Property values last month were up by 3.3 per cent on the same period last year.

The price of an average three-bedroom semi was £220,706, said the Halifax – up £7,400.

Values increased by 0.4 per cent in May after “virtually no change” in house prices over three months.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said May’s Halifax data should calm fears that house prices are on a downward spiral.

He said: “Admittedly, average prices still are 0.7 per cent below their December 2016 peak, but Halifax hasn’t reported a month-tomonth decline in prices since January.

“Recent further falls in mortgage rates are helping home buyers to take out slightly larger loans, even though their real wages are falling.

Confidence

“In addition, prices are being underpinned by a sharp reduction in supply.

“Many are deciding to delay listing their homes until the market strengthens again.”

House price growth is running at around a third of the levels seen in spring last year, and 3.3 per cent is the lowest annual rise since a 2.6 per cent increase in May 2013, Halifax data showed.

Alex Gosling of online estate agents HouseSimple.com, said: “House prices have fallen over the past quarter during a time when we’ve seen Article 50 invoked and a General Election called.

“All this political and economic uncertainty is inevitably hitting buyer and seller confidence. But this is not a property market in crisis.

“It’s likely growth will be in low single digits this year, but the buyers and sellers are still out there.”

Martin Ellis of the Halifax said low supply of property, historically low mortgage rates and a high employment rate were “likely to support house price levels over the coming months”.