Nationwide attributed the improvement to the low supply of new properties coming onto the market but also said that rising unemployment and restricted lending meant prices were likely to resume their downward path.
Commenting on the figures Martin Gahbauer, Nationwide’s Chief Economist, said:
“The price of a typical house rose by 1.2% in May, providing further evidence of some improvement in housing market conditions over the last few months. At £154,016, the average house price is still 11.3% lower than a year ago, although this marks a significant improvement from the annual decline of 15.0% recorded in April. The 3 month on 3 month rate of change – a smoother indicator of short-term price trends – rose from -3.0% in April to -0.5% in May and now stands at its highest level since January 2008”
Have your say on this story using the comment section below.