UK house price growth edges up in May – Nationwide

UK annual house price growth rose slightly to 3.5 per cent in May, up from 3.4 per cent in April, according to Nationwide data.

The figures reflect a resilient housing market, despite ongoing economic uncertainty. Nationwide’s chief economist Robert Gardner said housing demand remained supported by low unemployment, rising real wages, and strong household finances.

He added that mortgage activity appeared stable even after the March surge in transactions, which was driven by buyers rushing to beat higher stamp duty rates.

House prices in predominantly rural areas have climbed 23 per cent since December 2019, outpacing the 18 per cent rise seen in largely urban areas.

The pandemic had fuelled a shift in demand toward countryside homes, particularly among older buyers, a trend that has moderated but not reversed.

Nationwide’s recent survey found that most movers stayed within the same type of area, but younger buyers tended to gravitate toward cities, while older ones favoured rural relocations.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama