HOUSE prices show no sign of slowing down as the average property value increased by more than £3,000 in May alone, according to the latest index.

Figures show property value has increased by 9.5 per-cent annually to May, reaching a record high of £261,743 on average, according to data from Halifax. 

Across the UK, house prices increased by 1.3% month-on-month with inflation as its strongest level in nearly seven years. 

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Russell Galley, managing director at Halifax, said: “House prices reached another record high in May, with the average property adding more than £3,000 (1.3 per-cent) to its value in the last month alone.

“A year on from the first easing of national lockdown restrictions, and the gradual reopening of the housing market, annual growth surged to 9.5 per-cent."

This means that the average UK home has increased in value by more than £22,000 over the past 12 months.

As people rush to get on the property ladder and make the most of the buoyant market, the south is lagging behind in terms of inflation - an area which it is normally leading the way. 

In the year since the first national lockdown it is clear that buyers' habits have changed significantly with people prioritising outside areas and more space overall -which could be a driving force for properties in the north of england to increase in value so rapidly.  


In the South West the average property value increased by 8.6 per-cent and rose to £266,182. 

Sean Gibson, head of residential sales at Savills in Canford Cliffs, said: "In many cases, the third national lockdown made people more aware of what they’re missing and lots of buyers are now looking to somewhere a bit more vibrant with plenty to offer once social distancing measures are further relaxed.

Bournemouth Echo:

Sean Gibson, head of residential sales at Savills in Canford Cliffs (Savills)

"Strong demand from lifestyle relocators, second home buyers and local movers has seen price rises continue across coastal areas, with a desire to relocate also prompted by a year spent apart from relatives.

"Looking forward, and noting that demand is significantly outweighing supply in the housing market currently, lifestyle drivers and the search for more space is likely to continue throughout much of 2021 - particularly as the prolonged experience of lockdown will drive more people to upsize and, in some cases, relocate to be nearer to family.”

The property market is witnessing an almighty boom with sales completeing at record rates as a result of government policies such as the stamp duty tax holiday. 

This is particularly relevant in Dorset whereby lifestyle drivers and government housing schemes are leading to a more saturated market as people from outside of the county move down. 

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Tom Parker, consumer spokesperson at Zoopla said: "The search for space, combined with a shortage in supply, is continuing to impact house prices in the south.

"Three and four bedroom houses are the most in-demand property type but listings of four-bedroom homes for sale are down year on year by 44 per-cent in the South West and 40 per-cent in the South East.

"This disparity is positive news for sellers, although for buyers it means there will be more competition."

Here are average house prices followed by the annual increase in May, according to Halifax:

– East Midlands, £213,481, 9.2 per-cent

– Eastern England, £302,158, 6.5 per-cent

– London, £509,621, 3.1 per-cent

– North East, £150,401, 6.9 per-cent

– North West, £199,441, 10.6 per-cent

– Northern Ireland, £160,641, 9.1 per-cent

– Scotland, £183,351, 7.4 per-cent

– South East, £351,437, 6.1 per-cent

– South West, £266,182, 8.6 per-cent

– Wales, £190,345, 11.9 per-cent

– West Midlands, £220,998, 9.0 per-cent

– Yorkshire and the Humber, £183,404, 10.2 per-cent