UK house prices up 2% y-o-y in May, says Hometrack

LONDON: House prices in England and Wales are 2% up on a year ago, the biggest annual rise since January 2008, though non-seasonally adjusted monthly data points to a slowdown, property data company Hometrack said on Monday, May 31.

May's monthly house price growth held steady at April's three-month low of 0.2% while increases in sales, new buyers and new properties were all the weakest since January, when unusually icy weather caused widespread economic disruption.

"Uncertainty generated by the election had a clear impact on housing market activity with fewer buyers coming to the market, a marked slowdown in sales agreed and a drop off in the number of new homes for sale," said Hometrack's director of research, Richard Donnell.

As in April, price rises were concentrated in London and southeastern England, according to Hometrack's survey of 1,500 estate agents and surveyors.

Mortgage lenders Halifax and Nationwide have reported that property prices have risen around 10% from a low hit around a year ago, but access to finance is still hard for many buyers after the credit crunch.