Downward price pressures continue to ease across the board but prices are still 3.3% lower than a year ago. This is according to the May house price index from e.surv.

The latest data reveals that the North East the first region to move out of negative territory buy the South East has a lot of catching up to do

Average house price in England & Wales now stand at £356,014, down 0.2% on April, down 3.3% annually

Commenting on the latest figures e.surve director Richard Sexton said: “This month, the average sale price of a home in England and Wales in May fell by just over £600 (0.2%) to £356,014 which is about £12,000 lower than a year ago. Prices are now £23,000 (6.1%) below the peak reached in October 2022, but they still remain some £40,000 (13%) higher than at the start of the pandemic in March 2020.

Sexton insisted that the the pushing back of previously expected interest rate cuts by the Bank of England and the subsequent upward repricing of mortgage rates by lenders, had meant any anticipated help for borrowers has been short-lived.

“Less buyers, of course, has an impact on prices which we can clearly see being played out at a regional level.

“A real north south divide has opened up. London, the South East, and East of England are the regions with the weakest price trends and continue to struggle, reflecting the much higher house price levels, affordability challenges and greater reliance on mortgage finance in these regions – factors that really impact first-time buyers whose prospects of buying have been facing headwinds for years now.”

He added: “Much of this may change after the coming election as political parties are already promising action to support the first-time buyer market.”

Last week the latest Halifax House Price Index revealed that UK house prices were largely static in May, edging down slightly by -0.1% or around £170 in cash terms.