MNI: UK Nationwide House Prices Edge Lower In May

--UK Nationwide May house price index -0.2% m/m, 2.4% y/y

     LONDON (MNI) - UK house prices slipped in May, falling 0.2% on the month,

with annual gains decelerating to 2.4%, down from 2.6% in April, the Nationwide

House Price Index showed.

     Annual house price growth in the Nationwide series has held in a 2 to 3%

range since May 2017, but is now bumping along at the lower ends of the range. 

     Nationwide's Chief Economist Robert Gardiner said house prices remains in a

narrow trading range.

     "Annual house price growth has been confined to a fairly narrow range of

c2-3% over the past 12 months, suggesting little change in the balance between

demand and supply in the market over that period. There are few signs of an

imminent change. Surveyors continue to report subdued levels of new buyer

enquiries, while the supply of properties on the market remains more of a

trickle than a torrent," he said.

     "Looking further ahead, much will depend on how broader economic conditions

evolve, especially in the labour market, but also with respect to interest

rates. Subdued economic activity and ongoing pressure on household budgets is

likely to continue to exert a modest drag on housing market activity and house

price growth this year, though borrowing costs are likely to remain low.

Overall, we continue to expect house prices to rise by around 1% over the course

of 2018," he added.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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