Growth in residential property prices in the UK continued to slow, but the cost of the average home still increased by 4.7% in the 12 months to May 2017, although this is down from the 5.3% rise in the year to April, according to the latest data from the Office for National Statistics (ONS).
The average price of a home in the UK stood at £221,000 in May, up by around £10,000 from the corresponding month last year, the ONS said, with England seeing the biggest hike in prices, with growth of 5%.
ONS data shows that the average price of a residential property in England is now £238,000, a property in Wales costs £150,000 following a 3.8% increase in prices over the past 12 months, a home in Scotland rose 3.5% to £143,000, while the average price of a property in Northern Ireland increased by 4.3% to an average of £124,000 in May.
The greatest level of capital growth was recorded in the East of England, where the average price of a home went up by 7.5%, just ahead of the East Midlands where property values rose by 7.2%.
Doug Crawford, CEO of My Home Move, said: “The 4.7% annual house price growth for May shows that, despite the slight slowdown, the housing market is still simmering away nicely. Even though the overall growth rate has fallen, for first-time buyers the slower rate of house price growth will be welcome, particularly with inflation running ahead of wages for many.
“However, the headline figure masks a lot of regional variation, with price growth particularly strong in the East of England and the East Midlands but more sluggish in London. There is a complicated cocktail of house price growth, inflation and wage growth that varies significantly through the regions, which means buyers are having very different experiences of the housing market depending on where they are buying.
“Our recent research found that average deposits climbed £6,000 in the last year, with increases in some regions of over 30%.”