The annual pace of house price growth slowed to 4.6% in May from 5.2% in April. UK house prices rose by 0.3%.
Robert Gardner, Nationwide’s Chief Economist, commented “The annual pace of house price growth slowed to 4.6% in May. This resumes the gradual downward trend that had been in evidence since the summer of 2014, which was briefly interrupted in April when price growth edged up to 5.2% from 5.1% in March. Annual house price growth is now running at less than half the pace prevailing in mid-2014.
“Over the longer term we would expect house price growth to converge with earnings growth, which has typically been around 4% per annum. However, much will depend on supply side developments - in recent years the rate of building activity has remained well below that required to keep up with population growth."
|House Price Index Headlines||May 2015||Apr 2015|
|Average Price (not seasonally adjusted)||£195,166||£193,048|
*Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)