Housing market is losing momentum: Nationwide

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Average UK house price rises fell to 2.1 per cent in May, according to the latest Nationwide house price index.

There was a 0.2 per cent month-on-month drop in house prices, according to the index.

The lender estimates the average UK property is now worth £208,711.

Nationwide chief economist Robert Gardner says: “House prices recorded their third consecutive monthly fall in May – the first time this has occurred since 2009.

“The annual rate of growth slowed to 2.1 per cent, the weakest in almost four years.

“It is still early days, but this provides further evidence that the housing market is losing momentum.

“Moreover, this may be indicative of a wider slowdown in the household sector, though data continues to send mixed signals in this regard.”

The lender notes that next week’s general election is unlikely to hit house prices.

Legal & General Mortgage Club director Jeremy Duncombe says: “Our housing market is still very much regionally divided. While cities such as Birmingham and Manchester are experiencing strong house price growth, in London and the South East, we’re starting to see a slight correction in the eye-watering prices we have grown accustomed to.”