The average house price in May was £200,347, representing annual growth of 7.8% from May 2009 – falling back from the high rate of annual growth recorded in April (9.1%). Despite the reduced rate of annual growth, average prices continued the steady rise seen over the last 12 months, remaining at the highest level recorded in nearly two years (July 2008).
The six month rolling average continues to indicate a period of market stability, with figures maintained at a sustainable level, fluctuating only 1-2%, for the year to date. This is in stark contrast to data recorded during 2009 when the market began its correction.
Stuart Law, Chief Executive of Assetz, said:
“Since the start of 2010, the annualised House Price Watch data has been pointing towards a more stable outlook for the market and this is now being reflected in the monthly figures recorded across the indices.
"As expected the rate of UK house price growth slowed in May. However, it still remains at a robust level with the average house price climbing for the fourteenth consecutive month, barring a very minor fall during the usual slowdown in December.
“Average house prices are now less than 7% below the peak recorded in 2007 and they have climbed by over 3% for the year to date. All signs suggest that this figure will continue to edge up slowly to reach my prediction of 5% growth for 2010 as a whole.”
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