House prices fall for the THIRD month in a row as housing market ‘loses momentum’
House prices have fallen for the third month in a row, but average prices are still up 2.1 per cent year-on-year
PROPERTY prices have fallen for the third month in a row, and this is the first time this has happened since 2009, a house price index shows.
Prices fell 0.2 per cent in May, 0.4 per cent in April, and 0.3 per cent in March.
Nationwide Building Society, which publishes its house price index data each month, found that across the UK, the average property price was £208,711 in May.
While this means that average house prices are up 2.1 per cent year-on-year, the index shows that price growth is slowing - with price growth the previous year at 4.7 per cent.
Robert Gardner, Nationwide's chief economist, said that the figures provide further evidence that the housing market is "losing momentum".
MOST READ IN MONEY
He said: “House prices recorded their third consecutive monthly fall in May – the first time this has occurred since 2009.
"The annual rate of growth slowed to 2.1 per cent, the weakest in almost four years.
“If history is any guide, the slowdown is unlikely to be linked to election-related uncertainty. Housing market trends have not traditionally been impacted around the time of general elections."
Gardner added that it is too early to know whether the slowdown is "merely a blip", a reflection of the squeeze on household budgets, or is a result of increasing affordability pressures in key areas.
He said that despite the "unusually uncertain" outlook for the economy, the subdued level of building activity and the shortage of properties on the market are likely to help hold prices up.
He believes a small increase in prices of around 2 per cent is likely over the rest of the year.
Last month, The Sun Online revealed the 10 least affordable places to buy in the UK, where house prices are seventeen times the average salary.
As well as London, Brighton, Broxbourne, Oxford and Hertsmere were found to be the least affordable places for buyers.
How to get help buying a house
THERE are several government schemes available to help you get on the housing ladder.
- Help to Buy loan: This scheme is for those who have a 5 per cent deposit, and is only available on new-build properties that are worth less than £600,000. The government lends you up to 20 per cent of the property value (interest-free for the first five years) which gives you access to cheaper mortgages. You will need to pay this back at the end of the mortgage or when you sell.
- Starter Homes: First-time buyers under the age of 40 can access this new scheme. You’ll get a 20 per cent discount on the market value of the property (new-build only) but you cannot sell or let the property for five years after you buy it.
- Shared ownership: This scheme is available to non-homeowners who earn £80,000 a year or less (£90,000 in London). People can buy a share of a home from a housing association and continue to rent the remainder. Buyers will need a ten per cent deposit as well as money to cover stamp duty and other fees. You’ll also need to find a mortgage lender that is willing to lend on shared ownership properties
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516