Prices rise despite fewer buyers as first-time buyers buy more expensive homes
House prices in the UK have risen 1.5% year-on-year, according to Zoopla.
The firm’s latest house price index shows price inflation in the year to May was up on the 1.3% annual increase posted the previous month.
The index shows that price growth continues to be low across London and southern regions. Annual price growth is flat in London (0%), and low in the south west (0.1%) and south east (0.8%), while growth went into reverse in the east of England (-0.2%).
By contrast, northern regions and Scotland posted stronger price growth. The north west saw annual growth of 3.6%, the north east 3.4% and Scotland 3%. Northern Ireland saw prices grow 6.9%
Sales agreed are 1% higher than last year despite a drop in active buyers of 10%, as home movers accounted for a bigger proportion of sales
First-time buyer enquiries have fallen 6% with buyers on average targeting homes worth £10,000 more than last year.
Zoopla said: “First-time buyers are targeting homes worth £10,000 more than a year ago, and they are not compromising on what they are buying.
“That is the key finding from our latest data. It explains why UK house price inflation has edged higher this month, despite a market where overall buyer demand is running 10% below last year.”
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