Financial News: UK Nationwide House Prices Fall In May

UK Nationwide House Prices Fall In May

06/01/2026 - 03:54:00 (RTTNews)

(RTTNews) - UK house prices declined for the first time this year amid high uncertainty over the developments in the Middle East and its impact on inflation and market interest rates, data from Nationwide Building Society showed Monday.

House prices dropped 0.6 percent month-on-month in May, in contrast to the 0.4 percent rise in the prior month. This was the first monthly drop so far this year and also came in weaker than forecast of 0.1 percent fall.

On a yearly basis, house price growth eased notably to 1.7 percent from 3.0 percent in the previous month.

"Given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates, some loss of momentum was to be expected," Nationwide's Chief Economist Robert Gardner said.

Gardner noted that measures of housing market sentiment also deteriorated. Economic growth is forecast to be somewhat weaker and inflation higher than previously projected due to the war in the Middle East. That said, the impact will ultimately depend on the duration of the shock and the policy response, he observed. Despite the rise in market interest rates, the impact on housing affordability has so far been moderate, Gardner said.

There is some confidence that, if the latest shock passes relatively quickly, and energy prices normalize in the quarters ahead, any near-term softening in the housing market will also prove short lived, said Gardner.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.S. New Home Sales Rebound In June, Annual Rate Exceeds Estimates (41 min(s), 24 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Friday showed new home sales in the U. ...Full Story»

UK Private Sector Activity Returns To Growth In July (02 hr(s), 18 min(s), 24 sec(s) ago)
(RTTNews) - The UK private sector expanded for the first time in three months in July amid a sligh ...Full Story»

Eurozone Private Sector Expands For First Time In 4 Months (02 hr(s), 22 min(s), 24 sec(s) ago)
(RTTNews) - Eurozone private sector expanded for the first time in four months in July on renewed ...Full Story»

German Private Sector Returns To Expansion Territory (03 hr(s), 21 min(s), 24 sec(s) ago)
(RTTNews) - Germany's private sector returned to expansion territory in July for the first tim ...Full Story»

French Private Sector Contracts Marginally (04 hr(s), 25 min(s), 24 sec(s) ago)
(RTTNews) - France's private sector contracted only marginally in July as the services economy ...Full Story»

Energy Prices Ease Spain's Producer Inflation In June (04 hr(s), 59 min(s), 24 sec(s) ago)
(RTTNews) - Spain's producer price inflation moderated in June after hitting the highest since ...Full Story»

German Consumer Sentiment To Fall In August (05 hr(s), 06 min(s), 24 sec(s) ago)
(RTTNews) - German consumer confidence is set to weaken in August due to lower income expectations ...Full Story»

Czech Economic Sentiment Edges Higher In July (05 hr(s), 24 min(s), 24 sec(s) ago)
(RTTNews) - The Czech economy's confidence remained slightly more positive in July, while cons ...Full Story»