Halifax, a major U.K. mortgage lender, said in a statement that U.K. home prices rose 10.5% year over year in May, compared with 10.8% in April.
A monthly comparison shows that home prices rose 1% in May, following a 1.2% increase in April, which was the 11th consecutive month of growth.
Halifax explained that demand for houses and apartments will tend to slow further as the household sector faces rising inflation.
Halifax’s executive director explained that the shortage of homes for sale is the main reason for rising home prices, despite a tight cost of living. Inflation is approaching the 10% mark.