Nationwide: House prices fell in May

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Nationwide: House prices fell in May

Thu 29th May 2008

Nationwide's latest house price index has recorded a 2.5 per cent drop in May, meaning house prices are now 4.4 per cent lower than they were this time last year.

This represents the longest consecutive period of monthly falls since 1992, according to the building society.

However, despite the dip, house prices are still five per cent higher then they were two years ago, with the average property costing £173,583.

Fionnuala Earley, Nationwide's chief economist, suggested that for the majority of homeowners the recent house price falls will simply erode the large gains they have made in recent years.

"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," she said.

Ms Earley did acknowledge that those who bought at the peak of this cycle will probably be affected by the house price falls.

Nationwide recorded a fall in average house prices of 1.1 per cent last month.

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