House price growth across the U.K. slowed in May, as annual increases fell compared to the previous months, according to a report Thursday from major U.K. bank and mortgage lender Halifax.
Though house prices rose 1.9% in the three months to May compared to the same time a year ago, that’s a slowdown from the 2.2% annual growth logged in April, and from the 2.7% annual growth seen in March.
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The average house price is now £224,439 (US$300,835), the report said.
On a monthly basis, prices rose 1.5% in May compared to April, but the monthly figures are more volatile than the quarterly or annual measures, said Russell Galley, managing director of Halifax, in the report.
"In the three months to May, house prices were 0.2% higher than the previous quarter and on an annual basis they are 1.9% higher. Both of these measures have fallen since reaching a recent peak, in the final months of last year," Mr. Galley said. "These latest price changes reflect a relatively subdued U.K. housing market."
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But beyond prices, "newly agreed sales and new buyer enquiries are both showing signs of stabilization having fallen in recent months," Mr. Galley said.
Going forward, Halifax predicts that continuing low interest rates and mortgage affordability will provide a further underpinning to prices.