Average house price reaches £211,056

The latest figures produced by the Department of Communities and Local Government have revealed that the average property price in the UK reached £211,056 in May.

According to the department, the UK's annual rate of house price inflation in May fell from 11.3 per cent in April to 10.9 per cent during the following month.

However, first-time buyers in London saw the rate of inflation reach 14.5 per cent – higher than the 14 per cent recorded in April.

Responding to the figures, David Stubbs, senior economist at the Royal Institution of Chartered Surveyors, said that the report showed the UK's housing market was continuing to grow at a significant pace.

"House prices should show a further gradual slowing over the coming months but interest rate increases have produced a rapid deterioration in affordability and the prospect of six per cent interest rates by the end of the year will dampen confidence and activity further," he remarked.

Michael Coogan, director general of the Council of Mortgage Lenders, recently warned that many mortgage borrowers would be coming-off fixed-rate loans and could face higher repayments following recent rate rises.

Related Articles:
Take a year off mortgage payments with Nationwide competition
Dream home 'kept in mind by 60 per cent of Brits'
Property 'key goal for under 30s'
Most property buyers 'would look abroad to purchase'
Parents 'spend more time helping first-borns on ladder'