UK House Prices Rise Faster Than Expected in May

British house prices rose faster than forecast last month, rebounding from a dip in April caused by a new tax on rental property, figures from mortgage lender Halifax showed on Tuesday.

Halifax said house prices rose by 0.6 percent in May, twice the rate forecast in a Reuters poll of economists and largely reversing April’s 0.8 percent dip.

“The strength of demand, combined with very low supply, is causing house prices to rise at a brisk pace,” Halifax housing economist Martin Ellis said.

Prices in the three months to May were 9.2 percent higher than a year earlier, the same rate of increase as in April, which was the slowest since November.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.