Housing market stagnates with prices up just 0.6% year on year, down month on month

The annual rate of house price growth in the UK was below 1% for a sixth month in a row in the year to May 2019, the latest lender home index shows. Year on year prices increased by just 0.6% to an average of £214,946 and month on month they fell by 0.2%, according to the data from lender the Nationwide. However, Robert Gardner, Nationwide’s chief economist, said that new buyer enquiries and consumer confidence have remained subdued in recent months. ‘Nevertheless, indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable,’ he pointed out. ‘Housing market trends are likely to continue to mirror developments in the broader economy. While healthy labour market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity, with price growth and transaction levels remaining close to current levels over the coming months,’ he added.

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