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- UK house price growth unexpectedly slows in May
UK house price growth unexpectedly slows in May
According to the report from Nationwide Building Society, annual house price growth slowed to 0.6% in May from 0.9% in April. Economists had expected a 1.2% increase. Prices fall 0.2% month-on-month, after taking account of seasonal factors. Experts predicted that prices will not change after rising 0.3% in April.
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “Annual house price growth remained below 1% for the sixth month in a row in May, at 0.6%. Survey data suggests that new buyer enquiries and consumer confidence have remained subdued in recent months. Nevertheless, indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable".
“Housing market trends are likely to continue to mirror developments in the broader economy. While healthy labour market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity, with price growth and transaction levels remaining close to current levels over the coming months".
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