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House Prices

May has been a month of build up, with June's general election approaching as well as uncertainty over Brexit negotiations causing homeowners to hold off making big decisions regarding money. The result of this was the first rise in house prices in five months across the UK.

According to a survey by the Royal Institution of Chartered Surveyors, as reported in The Guardian, buyers and sellers have chosen to put off buying and selling ahead of the general election.

A Halifax report also shows a shortage of properties coming onto the market, helping to drive a rise in house prices. The average house price increased by 0.4% to £220,706.

Uncertainty surrounding Brexit negotiations and the general election have caused economists to predict that the housing market to weaken this year. The recent increase in house prices comes as a surprise to many, with some forecasting a 0.1% fall.

A rise in UK house prices in May was also reported by Rics, but they reported a slower pace, with price falling in central London.

In May, Halifax reported that house prices in May had dropped and were nearly £3,000 below the peak price in December last year, but the latest data could ease concerns that house prices are in a downward spiral.