Annual house price inflation in England was 8.9%, 4% in Scotland, 3.6% in Wales and 5.9% in Northern Ireland. In London prices were up 13.6% year-on-year.
The volume of lending approvals for house purchases recovered slightly, by 1.3% in May, following a 6.2% fall in April. However, approvals on a monthly basis are still below the levels seen in the 10 months before the Stamp Duty changes.
However, Jonathan Hopper, managing director of the buying agents Garrington Property Finders, warned that the figures did not reflect the current market following the UK’s vote to leave the European Union.
“Reassuringly rosy though it is, this official house price data offers scant insight into what’s going on in today’s property market. The image is a familiar one – strong price growth in much of England, with prices in the South East and East Anglia rising at a blistering pace.”
He added that the pre-referendum market shown in the Land Registry’s figures now felt “a world away”.
“Many buyers have become very cautious and are asking for big price reductions – and vendors who have to sell are starting to offer discounts, often big ones. The pre-referendum seller’s market has gone, and buyers have regained the upper hand – even if lack of supply is likely to prop up prices in the medium-term,” he said.
“In less than a month, the property market has switched from a seller’s to a buyer’s market.”
