Halifax U.K. HPI rises 0.5% in May

[mikeyjerou]

Forexpros - House prices in the U.K. rose broadly in line with market expectations in May, after falling sharply in April, industry data showed on Thursday.

In a report, the Halifax Bank of Scotland said its House Price Index rose by 0.5% in May, in line with market expectations.

April’s figure was revised to a 2.3% drop from a previously reported 2.4% decline.

House prices in the three months to May were 0.8% higher than in the preceding three months, the second successive increase in this measure of the underlying trend in prices following six consecutive falls between October 2011 and March 2012.

Commenting on the report, Halifax housing economist Martin Ellis said, " Whilst there has been a modest improvement in the trend for house prices recently, the current average U.K. price is very similar to the levels both a year ago and at the beginning of this year.”

“We expect this situation to continue with prices likely to still be around today's levels at the end of 2012 as the ongoing tough economic environment constrains housing demand,” Mr. Ellis added.

Following the release of that data, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.38% to trade at 1.5437.

Meanwhile, European stock markets were mildly higher after the open. London’s FTSE 100 added 0.15%, the EURO STOXX 50 eased up 0.1%, France’s CAC 40 rose 0.2%, while Germany's DAX advanced 0.15%.