UK House Prices Fall For Third Month: Nationwide

Cornelia Mascio
Giugno 1, 2017

United Kingdom house prices fell for a third month in May, the worst streak for the market in eight years, according to Nationwide Building Society.

Nationwide said the data "provides further evidence that the housing market is losing momentum".

As month-on-month prices fell 0.2% this dragged annual house price growth down to 2.1% in May from 2.6% in April.

"If history is any guide, the slowdown is unlikely to be linked to election-related uncertainty", said Gardner. "Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home", he said.

'On the whole, prevailing trends have been maintained just before, during and after United Kingdom general elections. Broader economic trends appear to dominate any immediate election-related impacts.

This took the average price of a property to £208,711.

Nationwide said that mounting housing affordability pressure is likely to exert a drag on activity and house price growth in the quarters ahead
Nationwide said that mounting housing affordability pressure is likely to exert a drag on activity and house price growth in the quarters ahead

However, he added: "While real incomes are again coming under pressure as inflation has overtaken wage growth, the number of people in work has continued to rise at a healthy pace. While cities such as Birmingham and Manchester are experiencing strong house price growth, in London and the South East, we're starting to see a slight correction in the eye-watering prices we have grown accustomed to".

Jonathan Hopper, managing director of Garrington Property Finders, commented: "For the property market, it's a case of three strikes and you're out of form".

Mr. Gardner says that the future movements and trends in house prices will depend crucially on developments in the country's wider economy.

"The irony is that just two months ago activity in many areas was brisk, as the clouds of Brexit hesitancy began to part".

He said that despite the "unusually uncertain" outlook for the economy, the subdued level of building activity and the shortage of properties on the market are likely to help hold prices up.

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