House prices across England and Wales remained steady in May as the hangover from the election entered its final month before we expect to see a recovery in purchasing, but year-on-year figures remain strong and show real growth in prices.
According to the latest released report from the Land Registry, May saw the average house price in the nations sitting at £179,696. This was pretty much static when compared to April. However, the comparison on an annual basis shows how strong the market continues to be in 2015.
Across the two nations as a whole, the average yearly house price increase now sits at 4.6 per cent, well on course for prices to see a significant rise by the end of the year.
The latest annual growth also takes prices to near the peaks seen before the crash of the market in the wake of the economic downturn. At that time, prices fell by up to 35 per cent. However, in 2015, they are now only marginally below the peak average prices that were recorded way back in 2007.
On a regional basis, it's no surprise to see that London is once again at the top of the charts when it comes to annual increases. In the capital and the south-east as a whole, the yearly growth in property prices as of the end of May sits at 9.1 per cent.
One of the biggest changes we saw in the market in May was that the number of sales of homes for more than £1 million fell by six per cent. However, this is a reality that was to be expected in the run up to the election, where the threat of a mansion tax from Labour was still very real. We should see sales of these properties return to normal across the next few months.
Peter Rollings, chief executive officer of Marsh & Parsons, said: "The post-election feel good factor will soon serve up higher prices or transaction levels, and the market is set for future growth given the improved buyer confidence and increased supply of properties we’ve seen throughout June."