Nationwide reports House Prices still rising though by only 0.5% as opposed to 1.0% last month. Nationwide is the first of the main companies to report on May’s data but is again in line with a flattening of prices.

Last month Nationwide reported a return to yearly double digit growth, however as expected this has slipped back down to single digits, now at 9.8%. In reality a stabilisation of the price growth would see this reducing further over the next couple of months.

Nationwide’s chief economist Martin Gahbauer states:

“Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months,”

“The current supply-demand balance on the market is still consistent with relatively stable to modestly upward trending prices.

With the recent removal of HIPS and the potential Capital Gains Tax (CGT) increases has seen more sellers coming into the market and therefore easing the stock shortage. This could going forward cause a further ’stablisation’ of prices.

For more information visit:
http://news.bbc.co.uk/1/hi/business/10219681.stm or http://www.nationwide.co.uk/hpi/review.htm (note currently on 3/6, latest review is not yet available)

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