Nobody’s calling the bottom of the market just yet, but today the Nationwide Building Society said that UK house prices rose 1.2% in May – the biggest rise in over a year and a half.
Is this the start of the great house price recovery? Probably not. With the economy predicted to contract by 3.5% this year, unemployment set to rise, and the general scarcity of lending capital showing few signs of abating, May 2009 could well be a blip on the graph.
According to the Nationwide House Price Index, April saw a 0.3% fall (-15% year-on-year), while May’s 1.2% rise puts average house prices 11.3% down on 2008 prices.
Whether the recovery’s started or not, it does at least look as though the rate at which prices fall should be wholly more manageable than in 2008.
Learn more about how house prices are calculated, or read the full May 2009 Nationwide House Prices Report.
Which way do you think house prices will go? Has the market bottomed out? Let us know your thoughts by leaving comments below…
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