House prices fall for three consecutive months

June 8, 2017 by Brendan O'Neill

House Prices

According to figures released by Nationwide building society, house prices have fallen in the UK for three consecutive months, which is the first time it has occurred since the financial crisis in 2009.

The annual growth rate in May was 2.1%, the lowest rate of growth in four years which indicates that the housing market is slowing down. In May, the average house price fell by 0.2% to £208,711. In April, the average house price in the UK fell by 0.4% and in March it fell by 0.3%.

The chief economist for Nationwide, Robert Gardner, stated that the falling house prices were proof that the housing market is slowing down. Gardner added that he had also noticed that wage growth had been overtaken by inflation, although employment rates continued to grow.

The house price index from the Halifax also shows that house prices are falling. Although it has been suggested that this may be due to the uncertainty around the general election, Gardner dismisses this theory, stating that housing markets are not usually affected by elections.

Chief UK economist at Pantheon Macroeconomics, Samuel Tombs, agreed that prices have been previously unaffected by general elections, and that there had been no plans to increase property tax.

Falling house prices will provide mixed blessings for buyers and sellers. First time buyers may want to seek advice from a CeMAP qualified mortgage advisor to ensure that they find an affordable mortgage to buy their first home.