29
May
House prices fall by 2.5 per cent
House prices fell by 2.5 per cent this month, according to the
latest data from Nationwide, taking the average property price in
the UK to £173,583.
The building society found that house prices are 4.4 per cent lower
year-on-year, but are still five per cent higher than two years
ago.
Fionnuala Earley, Nationwide's chief economist, noted that this
latest dip represents the longest consecutive period of monthly
falls since 1992.
However, she stated: "A further fall in house prices in May was not
unexpected, and for most of those not wishing to move house or
borrow money secured on it, the fall in value of their home is
likely to be of limited concern in the short term."
For the majority homeowners the recent house price falls will
simply eat into the large gains they have made in recent years,
although those who bought at the peak of the cycle are likely to be
affected, Ms Earley added.
