House price growth falls further in May: Nationwide

Prices fall 0.2% month-on-month, after taking account of seasonal factors.

Robert Gardner, Nationwide's chief economist, said: “Survey data suggests that new buyer enquiries and consumer confidence have remained subdued in recent months. Nevertheless, indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable.

“Housing market trends are likely to continue to mirror developments in the broader economy. While healthy labour market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity, with price growth and transaction levels remaining close to current levels over the coming months."

Jonathan Hopper, managing director of Garrington Property Finders, commented: "This year’s Spring boost to prices has wilted faster than a bunch of daffodils. But on the front line we’re seeing activity levels blossom – and May has been our busiest month of the year so far.

“Average price rises have settled back into their familiar pattern. For six months in a row, the annual pace of price growth has been stuck below 1%.

“But with such extreme regional divergence, such insipid national averages are of limited use. In the weakest markets we’re seeing homes change hands for as much as 30% below guide price, while in the hottest areas, 10% above is not unusual for the most sought-after homes.

“Prices in London and the South East continue to slide. Affordability for first-time buyers remains very challenging and sellers are few in number. What sellers there are tend to be those who have no choice but to put their home on the market – and as a result they are having to recalibrate asking prices or accept low offers.

“Meanwhile in regions where buyers detect strong value, prices are rising at a decent clip as committed buyers run into thin supply and even competition for the best homes. Nevertheless we are seeing price rises cool in previously flying markets such as the North West and East Midlands, as these markets settle into a calmer reality.

“Three years on from the EU referendum, months of political limbo could still lie ahead for the UK. Yet for some astute and tactical buyers, that uncertainty is providing the perfect opportunity to make aggressive offers and secure some big discounts.”

Jeremy Leaf, north London estate agent and former RICS residential chairman, added: "Once again, we see no real pattern for the housing market emerging - one month prices, transactions or mortgage approvals are up, then down or very little movement, the next. The good news for us at the sharp end is that there is no major correction being seen or expected for the time being at least, despite some predictions to the contrary.

"However, the recent EU parliamentary elections demonstrate the country is still massively divided about Brexit just as the property market is split about how to remove the uncertainty it has created."