UK house price inflation picked up in May, according to official figures from the Office for National Statistics, while rental growth eased from the previous month.
The data from HM Land Registry revealed that house prices rose 3.9% over the past year to an average of £269,000, up from 3.6% growth in April.
Around Britain, average house prices increased 3.4% to £290,000 in England, up 5.1% in Wales, and 6.4% in Scotland over the 12 months to May.
Average house prices increased to £290,000 (up 3.4%) in England, £210,000 (up 5.1%) in Wales, and £192,000 (up 6.4%) in Scotland, in the 12 months to May.
Average monthly private rents increased by 6.7%, to £1,344, in the 12 months to June, down from the 7% increase in May.
Rents increased 6.7% to £1,399 in England, 8.2% to £804 in Wales, and 4.4% to £999 in Scotland. Northern Ireland saw average rents increased 7.6% to £852.
England's sharpest rent rises were in the North East at 9.7%, but just slightly south, they were lowest in Yorkshire and the Humber at 3.5%.
'Welcome news'
Increased house price growth will be "welcome news to sellers, who may see a flatlining economy and hear alarm bells ringing", says Jonathan Handford, managing director at estate agents Fine & Country.
"The volatility that we saw in the spring – largely down to changes in stamp duty – is fading, and buyer sentiment is clearly recovering."
Today's ONS survey echoes other research from RICS and fresher data from Nationwide and Halifax.
The latest RICS report noted that buyer demand flipped to positive in June for the first time since December 2024.
Prime properties, those valued over £750k, have seen price drops, Handford notes, which has driven "a surge in demand, as buyers look to snap up high-value properties at reduced prices".
From a renter's perspective, the "relentless drum beat of misery for renters goes on. However, it has softened from a kettle drum to a bass drum," says Sarah Coles, head of personal finance at Hargreaves Lansdown, "so while it’s still causing renters to reel, the impact isn’t quite so dramatic."
While rents are still rising, the pace of growth slowed for the sixth month in a row, down to 6.7% from 7.0%.
Coles says there are "some signs of more balance returning to the market", though she notes that the recent RICS data showed landlords are still selling up, the number of tenants is holding steady.
"The slowing in the flow of new renters is partly a result of just how much rents have risen in recent years, it’s proving impossible to move out of the family home, so hopeful would-be tenants are trapped in their childhood bedrooms."