The average house price in the UK rose in the year to May 2017, but house price growth continues to slow down, new figures from the Office for National Statistics (ONS) revealed.
House prices rose by 4.7 per cent in the year to May, but the pace of growth slowed by 0.6 per cent compared to the 5.3 per cent growth recorded in the year to April.
In May, the average UK house price stood at £221,000, which is £10,000 higher than May 2016 and £1,000 more than in April.
This was largely down to a 5 per cent rise in the price of homes in England, with the average English home now costing £238,000. In Wales, the average home is £150,000, after rising 3.8 per cent over the last year.
Average house prices are currently lowest in Northern Ireland, costing just £124,000, after rising 4.3 per cent. Meanwhile, houses in Scotland cost £143,000 on average, having risen 3.5 per cent over the past 12 months.
“The figures are in line with our expectations that growth in 2017 will be around half that of 2016,” said Richard Snook, senior economist at PwC.
“Our main scenario anticipates a softening of the market over the year with house price inflation falling from 7 per cent in 2016 to 3.7 per cent in 2017.
“We expect London to be one of the UK’s worst performing regions, achieving price growth of just 2.8 per cent in 2017.
“The key drivers of this slowdown are uncertainty related to Brexit and a softening in the economic outlook.”