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House prices fell again in May, Nationwide says | House prices fell again in May, Nationwide says |
(about 4 hours later) | |
UK house prices fell for the third consecutive month in May, according to the Nationwide. | UK house prices fell for the third consecutive month in May, according to the Nationwide. |
It was the first time that prices had fallen for three months in a row since 2009, the building society said. | It was the first time that prices had fallen for three months in a row since 2009, the building society said. |
Prices dropped 0.2% in May, while the annual rate of price growth slowed to 2.1% - the slowest pace for almost four years. | |
Nationwide said it was further evidence that the housing market was "losing momentum". | Nationwide said it was further evidence that the housing market was "losing momentum". |
However, it said it was too early to say whether it was more than a "blip". | However, it said it was too early to say whether it was more than a "blip". |
The building society said the slowdown could be linked to the recent squeeze on household budgets caused by the weakness of the pound. | The building society said the slowdown could be linked to the recent squeeze on household budgets caused by the weakness of the pound. |
Prices have been rising as the cost of imported goods goes up. At the same time, inflation has overtaken wage growth. | Prices have been rising as the cost of imported goods goes up. At the same time, inflation has overtaken wage growth. |
It also said "affordability pressures" in certain parts of the country could be to blame. | It also said "affordability pressures" in certain parts of the country could be to blame. |
However, Mr Gardener said: "The number of people in work has continued to rise at a healthy pace. Indeed, the unemployment rate fell to a 42-year low in the three months to March." | However, Mr Gardener said: "The number of people in work has continued to rise at a healthy pace. Indeed, the unemployment rate fell to a 42-year low in the three months to March." |
He said the pressures on the market were likely to continue, exerting a drag on house price growth in the quarters ahead. | He said the pressures on the market were likely to continue, exerting a drag on house price growth in the quarters ahead. |
But a shortage in the supply of housing was likely to support prices, he added. | But a shortage in the supply of housing was likely to support prices, he added. |
"As a result, we continue to believe that a small increase in house prices of around 2% is likely over the course of 2017 as a whole." | "As a result, we continue to believe that a small increase in house prices of around 2% is likely over the course of 2017 as a whole." |
Property prices rose by 4.5% in 2016, according to the building society. | Property prices rose by 4.5% in 2016, according to the building society. |
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, also said he expected 2% growth this year, with house prices returning to a "slowly rising path". | Samuel Tombs, chief UK economist at Pantheon Macroeconomics, also said he expected 2% growth this year, with house prices returning to a "slowly rising path". |
"Surveys suggest supply is tightening rapidly, employment growth looks set to remain steady at about 1% year-over-year, and mortgage rates still have scope to fall a little further," he said. | "Surveys suggest supply is tightening rapidly, employment growth looks set to remain steady at about 1% year-over-year, and mortgage rates still have scope to fall a little further," he said. |
"But the days of surging house prices driven by sharply rising loan-to-income ratios are gone." | "But the days of surging house prices driven by sharply rising loan-to-income ratios are gone." |
Where can I afford to live? | Where can I afford to live? |
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