Latest data released by UK Nationwide Building Society - 1 June 2021

  • Prior +2.1%
  • House prices +10.9% vs +9.4% y/y expected
  • Prior +7.1%

Annual house price growth hits double-digits in May as housing market conditions continue to run hot, with the average price of dwellings rising to £242,832 - a record high.

Nationwide notes that:

"May saw a further acceleration in annual house price growth to 10.9%, the highest level recorded since August 2014. In month-on-month terms, house prices rose by 1.8% in May, after taking account of seasonal effects, following a 2.3% rise in April.

"The market has seen a complete turnaround over the past twelve months. A year ago, activity collapsed in the wake of the first lockdown with housing transactions falling to a record low of 42,000 in April 2020. But activity surged towards the end of last year and into 2021, reaching a record high of 183,000 in March."

"While March's spike in transactions was driven by the original end date of the stamp duty holiday, a lot of momentum has been maintained. Our research indicates that the extension to the stamp duty holiday is not the key factor, though it is clearly impacting the timing of transactions."