In May, UK house prices saw an uptick following two months of declines, as the housing market demonstrated resilience despite ongoing affordability challenges, according to the Nationwide Building Society's report on Friday.
House prices increased by 0.4% month-on-month in May, counteracting a 0.4% drop in April. Market predictions had anticipated a more modest rise of 0.1%.
Consequently, the annual growth rate in house prices more than doubled, climbing to 1.3% from 0.6% in April.
Nationwide's Chief Economist, Robert Gardner, highlighted that the market is displaying resilience despite persisting affordability issues, which have arisen due to recent hikes in long-term interest rates. He attributed improved consumer confidence to stronger wage growth and lower inflation over recent months.
Discussing the potential effects of the general election on the housing market, Gardner remarked that elections typically do not play a significant role in the minds of most homebuyers when they are purchasing or selling properties.
The Bank of England (BoE) is scheduled to release mortgage approvals data for April later on Friday. Economists predict that approvals will edge up to 61,500 from 61,300 in March.
In May, the BoE maintained its interest rate at 5.25% for the sixth consecutive meeting, marking the highest level since early 2008. The bank also indicated that the first rate cut since 2020 might be imminent.
