Nationwide: House prices up 0.5% in May

Posted: 31 May 2007 11:04:25 GMT

The rate of growth in house prices has slowed to 0.5 per cent in May, according to the latest figures from Nationwide Building Society, although annual rates of inflation remained "resilient".

The rate of growth in house prices has slowed to 0.5 per cent in May, according to the latest figures from Nationwide Building Society, although annual rates of inflation remained "resilient".

The monthly change in house prices fell from 0.9 per cent in April to 0.5 per cent in May, with annual rate of house price growth remaining in double figures at 10.3 per cent.

According to Nationwide the average house in the UK now costs £181,584 - up from £180,314 in April.

This puts the average house price at around £17,000 higher than it was in May last year, the survey found.

Commenting on the findings, Nationwide's chief economist Fionnuala Earley said that there appeared to be a general slowing of the market, despite the reported growth.

"The underlying trend is still showing signs of slowing however," she said.

"The three-month on three-month growth rate fell to 1.8 per cent in May - its lowest level since August 2006."

She added that further interest rate rises in the coming months were likely to increase caution among buyers.

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