The index, which amalgamates data from five of the leading house price indices, including the Financial Times Acadametrics index, Rightmove, Nationwide, Halifax and the Communities and Local Government shows prices are showing sustained moderate growth.
Stuart Law, chief executive of Assetz, on May’s Halifax House Price Index, said: “Halifax reports that house prices are 16% below their 2007 peak but the average shows that it is closer to 6.7%. Suggestions by some critics of a slowing market are merely opinion and this is not evidenced in the data as house prices continue to recover.”
He continued that the difference between the Nationwide figures, which reported a 0.5% rise whereas Halifax showed a fall was a result of the ‘smaller’ data sets used to calculate the results.
“Halifax and Nationwide represent mortgages at the lower end of the market which are likely to have been the most affected over the last few years, impacting on their figures and the small volumes of transactions they record are leading to volatility in individual monthly data.
“As lenders continue to increase the number of mortgage products available and improve rates and loan-to-values, the market will continue to creep forwards and I would still expect to see a modest growth of 5% by the end of the year.”