House prices grow for tenth month in a row, but market continues to cool
House prices have growth for the tenth month in a row, according to the latest figures, though costs are continuing to slow in their steamroll.
The average price of a home in the UK grew 11.2 per cent to £269,914 in May, slowing slightly from the more than 12 per cent growth reported in April, Nationwide’s House Price Index has revealed today.
It means properties, on average, have grown nearly £2,300 more expensive in just one month.
“Despite growing headwinds from the squeeze on household budgets due to high inflation and a steady increase in borrowing costs, the housing market has retained a surprising amount of momentum,” Nationwide chief economist Robert Gardner said.
“Demand is being supported by strong labour market conditions, where the unemployment rate has fallen towards 50-year lows, and with the number of job vacancies at a record high. At the same time, the stock of homes on the market has remained low, keeping upward pressure on house prices.”
Gardnr added that the hot property market is expected to cooldown as the year goes on, with onlookers saying the cost of living crisis will inevitably weigh on rising house prices.
“The lack of a replacement of the Help to Buy scheme is exacerbating uncertainty in the market and may well drive transactions during 2022,” he said. “Despite the cost-of-living crisis, our analysis of the market points to a ‘panic buy’ situation later in the year as the deadline for Help to Buy looms, followed by a stagnation in sales prices coupled with a significant cost increase in private rental rates.”