House prices up 0.7% since start of 2012

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by Gill Montia

In the three months to end-May, UK house prices were 0.8% higher than in the prior quarter, marking the second successive quarterly increase, according to Halifax.

The improvement follows six consecutive quarterly falls (October 2011 to March 2012) with May recording the biggest three-monthly increase since August 2011.

On a monthly basis, the value of the typical home leapt 0.5% in May, to £160,941, following a 2.3% drop in April.

Prices since the beginning of the year are now up 0.7%, a tightening supply / demand ratio having helped to underpin the market.

Halifax housing economist, Martin Ellis, comments: “We expect this situation to continue with prices likely to still be around today’s levels at the end of 2012 as the ongoing tough economic environment constrains housing demand.”

He adds: “Overall, the trend for sales – like that for prices – appears to be one of broad stability.”