UK house prices remain stagnant, according to the latest data from Nationwide
UK house prices continued to fall in May, according to the latest figures from Nationwide.
According to the statistics, house prices fell by 0.2% from the previous month, marking the third decline in four months.
On an annualized basis, price growth slowed to 2.4% from 2.6% in April.
UK house prices rose 2.4% in May compared to the same month last year, but the rate of growth was slower than expected.
Robert Gardner, chief economist at Nationwide, commented: Although research firms continue to report subdued levels of new buyer inquiries, the supply of real estate on the market remains trickle rather than a torrent.
“Looking further ahead, much will depend on how broader economic conditions develop, particularly in the labor market but also in interest rates.
“Weak economic activity and continued pressure on household budgets are likely to continue to have a slight impact on housing market activity and house price growth this year, although borrowing costs are likely to remain low.”
The slowdown in the UK housing market is believed to be due to a London-led market decline, with particularly high stamp duty and uncertainty around Brexit deterring potential buyers.
House prices in the capital region experienced a significant 0.7% fall in March, according to the latest figures from the ONS.
Notably, this is the largest drop since 2009, at the height of the financial crisis.
“This is London’s lowest annual growth rate since September 2009, when it was -3.2%.London has seen an overall slowdown in annual growth since mid-2016. The next worst region was the North East, where prices rose by 2.1% in the year to March 2018,” the ONS said.
Nationwide is one of the UK’s largest mortgage providers and collates the UK House Price Index every month.
