United Kingdom: House prices post moderate recovery
May 27, 2011
In May, the average price of a typical property in the U.K. increased a seasonally adjusted 0.3% over the previous month, based on data collected by the mortgage lender Nationwide Building Society (NBS). The reading came in above both the 0.2% price decline observed in April as well as market expectations of a 0.1% rise. Despite the moderate recovery, house prices are 1.2% lower than a year ago (April: -1.3% year-on-year) and 10.1% below the peak reached in October 2007. House prices have stagnated in previous months, as the sluggish economic recovery has not gained sufficient momentum to lift the housing market. According to NBS, the outlook for the housing market remains uncertain and the consolidation of house prices is likely to persist through the remainder of 2011.