Growth of 1.9% has been recorded in May, with a still subdued market beginning to stabilise according to Halifax.
House prices grew 0.2% on a quarterly basis and 1.5% on a monthly basis, which compares favourably with the drop of 3.1% in April. In June last year, the average house price in the UK was £220,915 compared with £224,439 now.
New sales and buyer enquiries have now stabilised after the falls recorded in the last few months. According to Russell Galley of Halifax:
"The continuing strength of the labour market is supporting house prices. In the three months to March the number of full-time employees increased by 202,000, the biggest rise in three years.With interest rates still very low we see mortgage affordability at very manageable levels providing a further underpinning to prices."
Kevin Roberts of Legal & General Mortgage Club indicates that the new, more stable status quo is good news for first home buyers.
Russell Quirk of Emoov said that there were:
"positive signs for the the UK housing market, as heightened levels of buyer demand are beginning to filter through to completed sales breathing a new lease of life into the current property landscape".
The slowest annual pace in rental growth since April 2013 was recorded at just 1.18% over the past year according to new figures released by Landbay, a P2P lender.
East England led the nation in terms of rental growth over the past 5 years at 14.67%. The smallest increases were recorded in London and the North East at 6.88% and 1.9% respectively.
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UK housing market 'stabilises' in May