UK house price shows a +2.4% rise YOY in Hometrack’s May reporting

 

Hometrack’s latest market report has been released and makes interesting reading. Here are the headlines:

  • The 20 City index to the end May shows a 2.4% rise YOY – But there was a slowdown in the 3 months to May
  • Still predicting continuing increases in values during Q3 driven by a lack of supply coming to the market
  • Interest and enquiry levels have remained high and we still have the impact of the Welsh and Scottish markets reopening to come
  • Generally Hometrack report that it is the North that has led the rebound with Leeds, Sheffield and Manchester all performing well. But the East Midlands cities of Nottingham and Leicester are both in the top 3 YOY
  • Oxford has dipped into negative growth territory, but not for the first time in the last year or so. We say keep an eye on the Southern cities, previous downturns have been led by those areas.

Hometrack’s final comment provides a good summation “Further support and innovation to support the economy and the housing market cannot be ruled out in these unprecedented times which will limit the downside, albeit but not completely.” The downside is not expected to come until the end of Q3 and during Q4 as the current Government support unwinds.

As a consultancy rooted in social and affordable housing we cannot help but say if there is a downturn in the housing market the Government should put even greater resources into supporting the NFH, CIH and others HomesAtTheHeart, and provide a once-in-a-generation investment in social housing and the people who live in it.

Click here to read the full report.