House price growth slows in May: Nationwide

This has slowed slightly from April, when growth was 2.6%. Prices fell 0.2% on the month, and the figures suggested a shift in housing stock towards private renting and flats.

The report also noted that annual house price growth has been confined to a 'fairly narrow range' of 2-3% over the past 12 months, suggesting little change in the balance between demand and supply in the market over that period.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said:

“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.

“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.

Craig McKinlay, Sales and Marketing Director, Kensington Mortgages, noted:

“The trend highlighted today is all too familiar. An insufficient supply of new housing is continuing to make prices creep up year-on-year. Whilst price rises of late have been more sustainable, the challenges of the housing market remain. The situation can be resolved, but it will take time, and the Government will need to redouble its efforts to meet the housing targets for future generations.

“Affordability will no doubt be a concern for many would-be buyers, yet when we consider how rates are at near record lows, now is still a good time to step onto the property ladder. For those, however, feeling unsure of where to start, there is help at hand. Speaking with a financial adviser is always a beneficial approach here, as their advice, clarity and support are often the key to helping borrowers, even those with complex circumstances, make their first or last step.”

Steve Seal, Director of Sales and Marketing, Bluestone Mortgages commented:

“House prices continue to creep up year-on-year, which, although slow, could overextend already stretched finances for some borrowers and leave them priced out of the market.

“Ultimately, high-street lenders must acknowledge that the lack of affordable housing, combined with the rising cost of living, is pushing some borrowers over tipping point. These borrowers, however, should be supported in finding solutions and not be unfairly blocked from homeownership solely because of a number on a credit score. These customers are individuals with unique circumstances, and for those who may have experienced a bump in the road, specialist lenders are here to help those feeling the squeeze.”