UK house prices rose by 3.5% in May compared to the same month last year, according to data released Monday by mortgage lender Nationwide. The monthly increase of 0.5% was stronger
than expected, rebounding from a decline in April.
Economists surveyed by Reuters had predicted a more modest 0.1% monthly rise and a 2.9% annual increase.
May’s seasonally adjusted monthly growth was the highest since December, although the year-on-year rise was the second-lowest since October, narrowly ahead of April’s 3.4% gain.
Property transactions had spiked in March as buyers rushed to complete purchases before the expiration of a partial stamp duty exemption. Sales then dropped in April, government data showed. But Nationwide noted signs of renewed demand in May.
"Despite global economic uncertainty, conditions remain broadly supportive for UK homebuyers," said Robert Gardner, Nationwide’s chief economist. He cited low unemployment, rising wages outpacing inflation, and the potential for further Bank of England interest rate cuts as factors helping sustain the market. Photo by Ruth Sharville, Wikimedia commons.