LONDON (MNI) – UK house prices rose 0.3% on the month in May
following a 0.3% drop in April, according to Nationwide’s latest house
price survey.

House prices were down 0.7% in May from the same month of 2011. In
April house prices were down 0.9% on the year.

House prices fell 0.9% in the latest three months to May from the
previous 3-month period. Prices were down 0.6% in the three months to
April and fell 0.4% in the three months to March.

Nationwide said that the May data provide some comfort that a
pattern of stable prices is being maintained even though the UK economy
dipped back into recession in Q1, and showed few signs of a significant
pickup in economic activity at the start of Q2.

Commenting on the figures, Robert Gardner, Nationwide’s chief
economist, said that demand for homes remains subdued on the back of
weak labour market conditions, but said the lack of homes coming onto
the market provided support for prices.

“This is in part a reflection of the low rate of building in recent
years which has failed to keep pace with household formation,” he added.

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