Halifax: House price growth slowing down

Halifax reported prices rose by 10.5% compared with May 2021. This is down from April’s 10.8% increase and marks the smallest increase since January 2022.

In monthly terms, prices increased for the 11^th consecutive month, up by one percent in May 2022 following a 1.2% increase in April 2022.

Russell Galley, managing director at Halifax, said the main driver for house prices was a shortage of supply, despite inflation approaching 10%.

“However, the housing market has begun to show signs of cooling. Mortgage activity has started to come down and, coupled with the inflationary pressures currently exerted on household budgets, it’s likely activity will start to slow," Galley said.

"So, there is perhaps one green shoot for prospective purchasers; with overall buying demand down compared to last year, we may be past the peak sellers’ market."

Halifax said nine regions of the United Kingdom registered double-digit annual inflation, with only Yorkshire and the Humber, Scotland and London in single figures.

Nationwide also reported a slowed pace of growth for May 2022.