UK house prices in reverse for third month in a row

UK house prices fell for the third month in a row in May, the first time this has happened since 2009, according to a survey from Nationwide published on Thursday.

As month-on-month prices fell 0.2% this dragged annual house price growth down to 2.1% in May from 2.6% in April.

The average price of a home slipped to £208,711 in May from £207,699 a month ago.

“It is still early days, but this provides further evidence that the housing market is losing momentum," said Robert Gardner, Nationwide's chief economist.

"Moreover, this may be indicative of a wider slowdown in the household sector, though data continues to send mixed signals in this regard."

Households have been squeezed as real incomes turned negative from a rise in inflation above wage growth.

“If history is any guide, the slowdown is unlikely to be linked to election-related uncertainty," said Gardner. "Housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home."