Monthly house prices in the UK grew by 0.4% in May 2024, marking a reversal from a 0.4% decline in April and exceeding the market consensus of a 0.1% gain.
According to Nationwide, house prices rose by 1.3% on a year-on-year basis, accelerating from a 0.6% increase in the prior period, which was the softest pace in three months.
This is the fourth consecutive month of rising home prices, driven by strong wage growth and lower inflation.
“Modest increases in mortgage rates since the Spring have slowed the housing market but not derailed it,” said Rob Wood, chief UK economist at Pantheon Macroeconomics.
According to Moneyfacts, average rates on both five and two-year fixed mortgages climbed between April and May having fallen in the previous six months.