Average UK house prices dipped 0.4% in May, representing a fall of nearly £1,150, after changes to stamp duty came into effect, according to the latest data from Halifax.
The average UK property is now valued at £296,648, down from £297,781 in April, when house prices rose for the first time this year.
On an annual basis, prices rose to 2.5% – adding just over £7,000 to the value of a typical home – though this was down from 3.2% in April.
Amanda Bryden, head of mortgages at Halifax, said: “These small monthly movements point to a housing market that has remained largely stable, with average prices down by just -0.2% since the start of the year. The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty.”
“Affordability remains a challenge, with house prices still high relative to incomes,” she added. “However, lower mortgage rates and steady wage growth have helped support buyer confidence.”
“The outlook will depend on the pace of cuts to interest rates, as well as the strength of future income growth and broader inflation trends,” Bryden said. “Despite ongoing pressure on household finances and a still uncertain economic backdrop, the housing market has shown resilience – a story we expect to continue in the months ahead.”