Despite not even reaching the end of May the figures from Nationwide’s house price index are already out. It indicates that house prices have risen marginally month on month by 0.3%. Clearly that’s not a large movement especially considering the fact that prices were down 0.2% in April. Nationwide itself points to the fact that the movement is not significant stating, “Overall, the modest pace of house price growth in May suggests that the property market is continuing to mirror the lacklustre trends evident in the wider economy”. The general tone of Nationwide’s outlook is a cautionary one due to the limited growth in the economy and the resultant low transaction levels in the housing market. It concludes that the most likely direction for house prices this year is sideways. On the upside mortgage availability is gradually improving and the number of lenders offering higher loan to value mortgage deals is slowly improving. However, this will be a slow process and consumer confidence remains fragile. On a practical note it is important to remember that indices all measure different things and take an overview. The UK market will vary regionally and so to ascertain the likely value of your own property it is important to monitor the local market to gauge conditions. Try our house price calculator to see how prices have moved according to the national lender indices.
Nationwide says house prices up in May