DAVY VIEW

A broad-based acceleration in residential property prices took place in May, while upward revisions to April data confirm strong momentum in Q2 despite high global uncertainty so far this year. We note positive signals from both mortgage approvals and new-property sales to households in May, which suggest that a pick-up in housing output should take place this year. Nonetheless, supply remains well below demand, and we reiterate our forecast for 7% price growth this year.