UK house prices slowing as market shows signs of cooling - Halifax

UK house prices slowed again in May as the market showed signs of cooling as soaring inflations starts to hit buyers, mortgage lender Halifax said on Wednesday.

The annual pace of house price increases slowed to 10.5% in May from 10.8% in April. Prices rose for the 11th consecutive month, up by 1.0% in May after a 1.2% increase in April.

Housing shortages remained the key driver for prices, said Russell Galley, managing director at Halifax.

"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," he 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."

Galley said the extent of the impact of property price inflation continued to be linked to the type of home people are looking to buy, making the rungs on the housing ladder “increasingly wider”. For first-time buyers.

“Compared to May last year, you’d need around £10,000 more to buy a flat, but an additional £50,000 for a detached home.”