House prices rose by a massive 3.9% in May according to the latest figures from the Halifax.
The large increase, comes after small falls were reported by the Halifax in March and April, and just a few days after the Nationwide suggested the increase during May was a far more modest 0.7%.
According to the Halifax, the UK’s largest mortgage lender, house prices are now 8.7% higher than this time last year, with the average home now worth £184,464.
By comparison the Nationwide put the annual rate of house price inflation at over 11%, and believe the value of the average home is £186,512; slightly higher than the figure given by the Nationwide.
A note of caution
Commenting on the figures Stephen Noakes, Mortgages Director at the Halifax, said: “On an annual basis housing demand is still strong and continues to be supported by a strengthening economic recovery. Consumer confidence is being boosted by a rapidly improving labour market and low interest rates, although growth in average earnings still remains weak.”
Noakes did however strike a note of caution: “However, there are signs of a revival in housebuilding which should bring supply and demand into better balance and curb upwards pressure on prices over the medium and longer term.”
Time will tell whether the Land Registry figures for May, due out on 27th June, support the data from the Halifax or Nationwide.