Nationwide reports that annual house price growth remains resilient in May, but the monthly increase has slowed and believes the latest interest rate rise will cool activity and price growth further.
The seasonally adjusted figures show that house prices increased by 0.5% in May, compared with a monthly increase of 0.9% in April. The annual change is still indicating a slight increase, up from 10.2% in April to just 10.3% in May. The average house price now stands at £181,584, compared with £180,314 in April.
Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said: "House prices increased by 0.5% in May, down from 0.9% in April. However, the headline annual rate remained stubbornly in double-digits, largely due to slower house price inflation at this time last year. House prices increased by 10.3% during the year, bringing the price of a typical house to £181,584, almost £17,000 higher than at the same time last year. The underlying trend is still showing signs of slowing however. The three-month on three-month growth rate fell to 1.8% in May; its lowest level since August 2006."
