House prices 0.7% lower than one year ago

House prices rose by 0.3% in May, but are still 0.7% lower than one year ago, the latest house price index from Nationwide shows.

The price of a typical home is now £166,022.

Robert Gardner, chief economist at Nationwide, says: “Prices were up by a modest 0.3% over the month, and were just 0.7% lower than May last year, even though the UK economy dipped back into recession in Q1, and showed few signs of a significant pickup in economic activity at the start of Q2.

“Demand for homes remains subdued on the back of weak labour market conditions, but the lack of homes coming onto the market is providing support for prices. This is in part a reflection of the low rate of building in recent years which has failed to keep pace with household formation.”