House prices edge back upwards in May: Halifax

Markit Group Limited’s Halifax Index shows the UK housing market has been depressed for much of the year, with only a tiny .2% price increase to show above and beyond the last quarter. The average UK house is now going for a market price of about 224,400.

Looking for the most positive spin possible, one can note that in May home values increased by 1.5%. However, even that positive adjustment proved no more than a way of erasing part of the overall 3.1% April fall in home values. Prior to the month of May, however, the home values in the UK were as a unit 1.9 percent higher than they were at the same time last year.

Analysts note that the seeming peaks and troughs are less important than the overall deflated state of the housing market. Stable sale-able prices are currently being supported by better wages and a stronger labor market. In an ironic plus, it’s likely the lack of stock will be what avoids a market fallout.

Key Takeaways:

According to Halifax, the latest data on UK house prices and its changes shows that the housing market is relatively subdued.
Managing Director of Halifax, Russell Galley, states that because the labor market has been continuously strong in the UK it has supported house prices.
According to Jonathan Samuels, chief executive at Octane Capital, the monthly housing price changes are deceptive. It is better to look at quarterly figures.

“House prices showed some signs of recovery in May, following significant falls the previous month, according to the latest house price index from the Halifax. On a monthly basis, prices increased by 1.5 per cent in May, partially reversing the 3.1 per cent decline recorded in April.”