What happened to UK house prices in May?

UK house prices rose 0.4% month on month in May, according to new data released by Nationwide.

Annual growth rate picked up to 1.3%, from 0.6% in April.

Property industry reacts to Nationwide House Price Index – Property Industry Eye

Headlines May-24 Apr-24
Monthly Index* 523.7 521.4
Monthly Change* 0.4% -0.4%
Annual Change 1.3% 0.6%
Average Price

(not seasonally adjusted)

£264,249 £261,962

* Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)

Robert Gardner, Nationwide’s chief economist, said: “UK house prices increased by 0.4% in May, after taking account of seasonal effects. This resulted in a slight pickup in the annual rate of house price growth to 1.3% in April, from 0.6% the previous month.

“The market appears to be showing signs of resilience in the face of ongoing affordability pressures following the rise in longer term interest rates in recent months. Consumer confidence has improved noticeably over the last few months (see chart below), supported by solid wage gains and lower inflation.

Will the election impact the housing market?

“With the recent announcement that the UK general election will take place on 4 July, we have analysed house price movements in the months around previous elections, and also the 2016 EU referendum.

“Past general elections do not appear to have generated volatility in house prices or resulted in a significant change in house price trends.”

On the whole, prevailing trends have been maintained just before, during and after UK general elections. Broader economic trends appear to dominate any immediate election-related impacts, according to Gardner.

He concluded: “2019 is a notable exception, but this was due to the impact of the pandemic, with the initial lockdown in 2020 suppressing housing market activity. Activity subsequently bounced back once restrictions began to be lifted.

“It appears that housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most homebuyers, elections are not foremost in their minds while buying or selling property.”


Property industry reacts to Nationwide House Price Index



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