U.K. House Prices Unexpectedly Rise in Sign of Stabilization

(Bloomberg) --

U.K. house prices unexpectedly rose in May in a sign of stability after a slowdown last year, mortgage lender Halifax said.

Prices rose 0.5% from April to an average of 237,837 pounds ($303,000), Halifax said. Economists expected no change. From a year ago, values increased 5.2% in the three months through May, though growth was particularly weak in the same period of 2018.

The U.K. property market has been suffering from Brexit uncertainty and unaffordable asking prices after two decades of rapid gains. A shortage of homes, record employment and low borrowing costs are nevertheless putting a floor under home values.

“Despite the ongoing political and economic uncertainty, underlying conditions in the broader economy continue to underpin the housing market,” said Russell Galley, managing director at Halifax. “We expect the current trend of stability based on high employment and low interest rates to persist over the coming months.”

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, David Goodman, Andrew Atkinson

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