May saw a decline in UK home prices; which areas experienced the fastest yearly growth in real estate prices?

May saw a 04 percent decline in house prices as the market reacted to a rush to complete transactions before the stamp duty deadline in April

According to the most recent house price index, the market readjusted following the stamp duty hikes in April, causing house prices in the UK to cool in May, dropping by 0.4 percent (roughly 1,150).

Halifax's house price index shows that the average cost of a home has decreased from 30.2 percent in April to 296,648, which represents an annual growth of about 2.5 percent (just over 7,000).

Monthly price growth has been comparatively flat in 2025, with a 0 point 4 percent decline in May after a 0 point 3 percent increase the month before.

As a result, average home prices have decreased by just 0.2 percent since the year began, meaning that overall home prices have stayed steady thus far this year.

"It seems that the market has absorbed the brief spike in activity that occurred during the spring and was caused by the stamp duty changes. Amanda Bryden, Halifax's head of mortgages, stated.

Although "lower mortgage rates and steady wage growth have helped support buyer confidence," Bryden cautioned that "affordability remains a challenge" because home prices are still high in comparison to average incomes.

According to Bryden, the sector's prospects are largely dependent on how quickly the Bank of England lowers interest rates, how income growth develops in the future, and whether inflation is controlled.

She stated, "The housing market has demonstrated resilience a story we expect to continue in the months ahead, despite ongoing pressure on household finances and a still uncertain economic backdrop."

The UK housing market was "surprisingly robust" in April, according to Holly Tomlinson, a financial planner at Quilter.

According to her, Halifax's data indicates that after the stamp duty increase in April, "the housing market saw a clear shift in momentum" because buyers had hurried to finish transactions in March.

The slight slowdown in price growth in May, according to Tomlinson, "reveals that supply is still limited and sellers have not yet been compelled to modify their expectations."

"With affordability still stretched and borrowing costs relatively high, it is impossible to overlook the risk of a longer slowdown," she cautioned.

Tomlinson spoke about the sector's prospects for the future and stated that market confidence will be greatly impacted by the timing and speed of interest rate cuts.

A more significant increase in buyer demand might not occur until there is more proof that mortgage rates are consistently declining, she continued.

After a hectic start to the year, the market seems to be taking a breather for the time being.

What region of the UK has seen the biggest increase in home prices?

Not all parts of the nation have seen the same rate of increase in home prices; Northern Ireland has seen significantly faster growth than places like London and the South West.

Prices in Northern Ireland surged in May after rising by an astounding 86% over the previous 12 months. Even with robust growth, the average home in the country still costs 209,388; however, this is still far less than the average in the UK.

The price of homes in the UK's other devolved nations increased significantly over the past year as well; Wales and Scotland both reported annual price increases of 40.8 percent.

The average price of a home in Scotland is currently 214,864, while in Wales it is 230,405 today.

In some parts of England, like the North West and Yorkshire and the Humber, home values have also increased significantly. Average property prices in these two northern regions have increased by 31.7 percent, with average prices of 240,823 and 213,983, respectively.

Although the cost of homes has increased in all parts of the UK, growth has been considerably more muted in London and the South West.

With an average home price of 542,017, Greater London remains the most expensive place in the nation to purchase a home, despite recent price increases of just 1.2 percent.

The UK's slowest-growing home price over the past 12 months was in the South West. In the last year, the average price of a home in this area increased by just 1.1 percent, and the average price is 304,519.

Halifax, published on June 6.