House prices see another fall in value

Nationwide Building Society said values ​fell 0.2​ per cent​ month-on-month in May, following a 0.4​ per cent​ decrease in April and ​a ​0.3​ per cent​ fall in March.

Across the UK, the average price was £208,711 in May, marking a 2.1​ per cent​ year-on-year increase.

A year earlier, price growth was more than double this rate, at 4.7​ per cent​.

Robert Gardner, Nationwide's chief economist, said it is too early to know whether the slowdown is "merely a blip", a reflection of the squeeze on household budgets, or is due to mounting 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.

As a result, he believes a small increase in prices of around 2​ per cent​ is likely over the course of 2017.

Mr Gardner 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.

"It is still early days, but this provides further evidence that the housing market is losing momentum. Moreover, this may be indicative of a wider slowdown in the household sector, though data continues to send mixed signals in this regard."

Mr Gardner said that "if history is any guide", the slowdown is unlikely to be related to uncertainty over the General Election on June 8.

"Housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home."

Mr Gardner said analysis shows past general elections do not appear to have generated volatility in house prices or resulted in a significant change in trends.

"Broader economic trends appear to dominate any immediate election-related impacts."