House prices increased by 3.2% – more than the average for the South East – in Waverley in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 14.5% over the last year.

The average Waverley house price in May was £540,491, Land Registry figures show – a 3.2% increase on April.

Over the month, the picture was different to that across the South East, where prices increased 1.4%, and Waverley was above the 1.2% rise for the UK as a whole.

Over the last year, the average sale price of property in Waverley rose by £68,000 – putting the area 16th among the South East’s 64 local authorities with price data for annual growth.

The highest annual growth in the region was in the Isle of Wight, where property prices increased on average by 18.1%, to £292,000. At the other end of the scale, properties in Oxford gained 4.8% in value, giving an average price of £466,000.

An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

Sarah Coles, senior personal finance analyst at financial advice company Hargreaves Lansdown, said:“The average house price hit another record high in May, and rose faster than any time since the peak in June last year.

"However, we’re starting to see small changes in the market, which are likely to mean weaker growth in the coming months, especially if interest rates are hiked in August."

First steps on the property ladder

First-time buyers in Waverley spent an average of £393,000 on their property – £46,000 more than a year ago, and £61,000 more than in May 2017.

By comparison, former owner-occupiers paid £637,000 on average in May – 62.1% more than first-time buyers.

Property types

Owners of terraced houses saw the biggest rise in property prices in Waverley in May – they increased 3.6%, to £414,293 on average. Over the last year, prices rose by 13.1%.

Among other types of property:

  • Detached: up 3.2% monthly; up 16.7% annually; £918,625 average
  • Semi-detached: up 3.3% monthly; up 15.3% annually; £544,756 average
  • Flats: up 2.7% monthly; up 8.7% annually; £269,361 average

How do property prices in Waverley compare?

Buyers paid 39.1% more than the average price in the South East (£389,000) in May for a property in Waverley. Across the South East, property prices are high compared to those across the UK, where the average cost £283,000.

The most expensive properties in the South East were in Elmbridge – £719,000 on average, and 1.3 times as much as more than in Waverley. Elmbridge properties cost three times as much as homes in Southampton (£239,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.

Factfile

Average property price in May

  • Waverley: £540,491
  • The South East:£388,531
  • UK: £283,496

Annual growth to May

  • Waverley: +14.5%
  • The South East: +13.5%
  • UK: +12.8%

Highest and lowest annual growth in the South East

  • The Isle of Wight: +18.1%
  • Oxford: +4.8%