(Alliance News) - House prices increased year-on-year for the third month in a row in May, according to official figures.
Average UK house prices increased by 2.2% in the 12 months to May, up from 1.3% annual growth in April, the Office for National Statistics (ONS) said.
It marked the third month in a row with an annual increase in prices, following eight months of annual falls in prices.
The average UK house price in May was GBP285,000.
The typical property value in England was GBP302,000 in May, up by 2.2% or GBP6,000 from a year earlier.
Yorkshire & the Humber was the English region with the highest house price inflation in the 12 months to May, at 3.9%.
Annual house price inflation was lowest in London, an increase of 0.2%.
The average house price for Wales was GBP216,000, up 2.4% or GBP5,000 annually.
In Scotland, the average property value was GBP191,000 in May, up 2.5% or GBP4,000 from a year earlier.
The average house price for Northern Ireland was GBP178,000, up 4.0% or GBP4,000 annually.
Meanwhile, rental prices slowed. Average private rents across the UK increased by 8.6% in the 12 months to June, edging down from 8.7% in the 12 months to May.
In June, the average private rent in Britain was GBP1,271 per month. This was GBP101 higher than 12 months earlier.
Richard Harrison, head of mortgages at Atom bank said: "The fact that the ONS has now reported three months of straight house price increases is a good indication of the growing confidence in the market."
He added: "Eyes will now turn to the Bank of England, and when it will look to start reducing bank base rate, as reduced rates will also serve to boost buyer confidence. With inflation continuing to move in the right direction, it's simply a question of when, not if."
David Hollingworth, associate director at broker L&C Mortgages, said: "On the upside, mortgage rates have been improving in recent weeks...a flurry of price changes is gradually helping to drag fixed rates down, albeit slowly. Competition is fierce in the market which has seen lenders regularly edging rates back down, unwinding increases in recent months. Lenders often have little margin to play with, so any move in market rates can have an impact on fixed rate pricing in either direction."
By Vicky Shaw, PA Personal Finance Correspondent
Press Association: Finance
source: PA
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