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UK home costs grew at a slower fee in Could in an indication that rising inflation and the squeeze on family budgets are cooling the property market.
The Nationwide Home Worth Index, printed on Wednesday, confirmed annual home worth progress was 11.2 per cent in Could, down from 12.1 per cent in April.
The modest slowdown is additional proof that steam may very well be popping out of the UK housing market, following two years of frenzied exercise fuelled by the stamp responsibility vacation and life-style adjustments through the pandemic.
However whereas consultants anticipate the price of residing disaster may additional damp transactions, they mentioned the figures additionally indicated the housing market remained buoyant.
Robert Gardner, chief economist at Nationwide, mentioned that whereas he anticipated the housing market to sluggish “because the yr progresses” it “retained a stunning quantity of momentum” in Could.
“Demand is being supported by sturdy labour market circumstances, the place the unemployment fee has fallen in the direction of 50-year lows, and with the variety of job vacancies at a document excessive,” he mentioned. “On the identical time, the inventory of houses in the marketplace has remained low, maintaining upward stress on home costs.”
Double digit worth rises through the pandemic had exaggerated a decades-long development of property values outstripping inflation and wage progress, Nationwide added.
In 1952, the yr the Queen got here to the throne, the common home worth was £1,891 – round £62,000 in immediately’s cash, and price 4 instances common earnings.
This implies present common home costs are 4.3 instances increased than 1952 ranges in actual phrases.
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