House prices rise by 0.5% month-on-month in May following April dip

HOUSE price growth accelerated in May, amid “supportive” underlying conditions for home buyers, according to an index.

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Property values increased by 0.5% month-on-month in May, following a 0.6% fall in April, taking the average UK house price to £273,427, Nationwide Building Society said.

The typical UK house price increased by 3.5% annually in May, compared with 3.4% in April.

Robert Gardner, Nationwide's chief economist, said: “Despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.”

A stamp duty holiday ended in March, with recent figures showing there was a stampede to get sales over the line before the deadline, followed by a transactions dip.

HM Revenue and Customs (HMRC) figures published last week showed an estimated 64,680 house sales took place in April - 64% lower than the 177,440 reported in March.

The study indicated the figures had been affected by changes to stamp duty rates which apply in England and Northern Ireland.