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UK house price growth accelerated in May, official data from the Office for National Statistics showed Wednesday. The average UK house price rose 3.9% to £269,000 in May, picking up speed from a 3.6% rise in April. Meanwhile, monthly private rents increased by 6.7% on-year in June, easing from a 7.0% expansion in May. ‘Although historic, the data shows house values continued to rise on an annual basis in May, with the average property price £10,000 higher than a year ago, even though affordability remains a challenge and is keeping prices in check to an extent,’ OnTheMarket analyst Jason Tebb said. ‘The market continues to demonstrate remarkable resilience, assisted by four interest rate reductions since last August. These cuts, with the suggestion of more to come, have boosted buyer and seller confidence, increasing activity in the market and benefiting the wider economy. The unexpected increase in inflation to 3.6% in June may persuade the bank to pause with regard to further reductions, although much depends on other economic data such as the jobs market.’ The analyst referred to data from the ONS on Wednesday which showed UK annual consumer price index inflation rate accelerated to 3.6% in June from 3.4% in May. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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