Annual house price growth slows in May

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
Monthly Index* 385.6 384.6
Monthly Change* 0.3% 1.0%
Annual Change 4.6% 5.2%
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)

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