According to the report from the Office for National Statistics (ONS), average house prices rose by 2.2% per annum in May after increasing by 1.3% per annum in April (revised from 1.1%). This was the strongest price increase since April 2023. Economists had expected prices to rise by 1.5% per annum. On a non-seasonally adjusted basis, average house prices increased by 1.2% between April and May, compared with an increase of 0.2% during the same period 12 months ago.
The ONS said that the average house price rose to 285,000 pounds in May from 279,000 pounds in May 2023. Average house prices increased in England (+2.2%, to 302,000 pounds), in Wales (+2.4%, to 216,000 pounds) and in Scotland (+2.5%, to 191,000 pounds).
Separate data showed that in June the average UK private rent rose by 8.6% per year after an increase of 8.7% per year in May. Average rents increased to 1,310 pounds (+8.6%) in England, 743 pounds (+8.2%) in Wales, and 959 pounds (+8.4%) in Scotland, in the 12 months to June. In Northern Ireland, average rents increased by 10.3% in the 12 months to April. In England, rents inflation was highest in London (9.7%) and lowest in the North East (5.9%), in the 12 months to June.