UK house prices: Homeowners think their house prices rose in May but sentiment is softening ahead of the General Election

Shruti Tripathi Chopra
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The house price index stood at 55.6, slightly below the reading of 57.4 in April (Source: Getty)

UK homeowners think the value of their homes increased in May, according to the latest house price sentiment index from Knight Frank and IHS Markit.

However, the perceived rate of house price growth was lower than in April.

Oliver Knight, an associate in Knight Frank’s residential research team, said: "The recent softening in sentiment in the immediate run up to the General Election in June may be a reaction to the slight uncertainty that inevitably comes with the vote, combined with wider inflationary pressures as well as affordability concerns in parts of the country. Yet at the same time, a lack of supply of housing for sale is underpinning pricing across much of the UK.”

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May’s reading was the 10th consecutive month that the index has been in positive territory following the post-referendum low in July.

Some 17.7 per cent of the 1,500 households surveyed said that the value of their home had risen over the last month compared to 6.5 per cent said that prices had fallen.

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The house price index stood at 55.6, slightly below the reading of 57.4 in April and the lowest reading so far this year.

Any figure over 50 indicates that prices are rising, and the higher the figure, the stronger the increase. Any figure below 50 indicates that prices are falling.

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Knight added: “May’s survey shows a moderation in both current and future house price sentiment compared with the previous month. Households still report that values are increasing, but at a more modest pace than before the EU referendum, which is consistent with wider housing market trends."

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