This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Annual Property Price Growth Slows
Annual property price growth in the UK slowed to 4.6% in May, down from 5.2% in April, according to the latest Nationwide house price index.
House prices increased by an average of 0.3% last month, compared to a 1% rise in April. The average property price was £195,166 in May, up from £193,048 in the previous month.
Chief Economist at Nationwide, Robert Gardner, forecasts house price growth to reflect income increases, which is currently around 4%.
He says: “The annual pace of house price growth slowed to 4.6% in May. This resumes the gradual downward trend that had been in evidence since the summer of 2014, which was briefly interrupted in April when house price growth edged up to 5.2% from 5.1% in March.
“Over the longer term, we would expect house price growth to converge with earnings growth, which has typically been around 4% per annum.
“However, much will depend on supply side developments; in recent years, the rate of building activity has remained well below that required to keep up with population growth.”1
1 http://www.propertyflock.co.uk/f/8416B41FC
