The picture remains inconsistent around the country, but the return of growth to the property market on an annual basis shows the market is beginning to stabilize, it said.
Transactions also rose to 60,000 in May, indicating the impact of Stamp Duty has receded said the property firm.
David Brown, commercial director of LSL Property Services, said: “A measured response to the growing and still uncertain eurozone crisis from mortgage lenders, along with ongoing strong demand from those able to save up large enough deposits to make purchases, has supported prices despite the tough external conditions which are buffeting the market.”
“The regional picture is still varied, with Yorkshire & Humberside seeing prices fall -2.3% on the year while London’s prices grew 2.4%, said LSL.
Lending is patchy around the country reflecting the regional differences up and down England & Wales as lenders remain cautious in areas with high unemployment.
CML data out yesterday showed first-time buyer purchases directly affected by the end of the Stamp Duty holiday slumped 70% between March and April. However, LSL suggested this hasn’t dampened the overall trajectory of the housing market, supported by limited housing stock and unease over long-term renting.
“The return of transactions to around 60,000 per month shows that the peak and trough effect of the first-time buyer stamp duty holiday seems to be stabilising and that the return of the levy for properties valued below £250,000 hasn’t produced a sustained slump in demand.”
