United Kingdom: Home prices edge up in May
June 1, 2012
In May, the price of a typical property in the U.K. increased a seasonally adjusted 0.3% over the previous month, according to data collected by the Nationwide Building Society (NBS). The figure contrasted a decline of the same magnitude in April. As a result, home prices are now 0.7% below the level seen in the same month last year. Home prices have been broadly unchanged since late 2010, hovering around GBP 165,000 for a typical property. According to the NBS, "demand for homes remains subdued on the back of weak labour market conditions, but the lack of homes coming onto the market is providing 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".