House price still double figures but loses pace: Nationwide Report
House prices in the UK rose by 11.2% year on year in May, reports Nationwide, which compares to an increase of 12.1% in April.
On a monthly basis, prices went up by 0.9%, which is the tenth monthly rise in a row across the UK.
The average house price in the UK now comes in at Ā£269,914.
Nationwide building society points to āstrong labour market conditionsā and a lack of housing stock as reasons for such a strong market, āDespite growing headwinds from the squeeze on household budgets due to high inflation and a steady increase in borrowing costs.ā
Avocado Ian adds. āThere is no doubt that low interest rates resulted in the supply and demand imbalance and therefore the price boom. Maybe the crazy increases are slowing down, but the market will stay busy and hectic for the rest of the year we feel at avocado.ā
Hargreaves Lansdown senior personal finance analyst, Sarah Coles, says: āHouse price growth was still impressive, but it was down again in May for the second consecutive month, and Nationwide has added its voice to those predicting price rises will continue to drop away as we go through the year.
Avocado Mike adds. āalthough the above can be read negatively, what they are actually suggesting is the prices will still rise, but not as fast as the prior 12 months.ā
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