Halifax House Price Index May 2023

UK house prices fell 1.0% YoY in May, the first annual decline since 2012, according to mortgage lender Halifax.
House prices in the south of England are under the most pressure.
Average UK property now costs £286,532 (up from £286,662 in April).

Annual rate of growth falls to -1.0%

Source: Halifax, IHS Markit

Key trends

The annual rate of house price growth was -1.0% in May, the first annual decline since December 2012 (-0.1%). This reflects cooler market conditions compared to strong house price growth last year.
House prices remained largely unchanged in May on a monthly basis, falling by £130 compared to April.
Prices remain £5,000 up since the end of last year and £25,000 higher than two years ago.
Prices fell on an annual basis across southern England, with the South East (=1.6%), South West (-1.4%) and Greater London (-1.2%) recording notable declines.
All other UK areas saw annual price growth weaken in May, except for Wales (+1.1%). West Midlands (+2.7%) and Yorkshire & Humberside (+2.3%) were the best performing regions in May.

Outlook

Although the housing market saw a small upturn at the beginning of the year, this has now been subdued as the impact of successive interest rate rises drives mortgage costs higher.
The prospect of further rate rises, driven by persistent inflation, will continue to dampen buyer confidence in the months to come.
However, wage growth remains strong, and its persistence should provide upside support to buyer demand in the near-term.