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House prices rise 1.2% in May, according to Nationwide

The average UK house price increased 1.2% to £154,016 in May, according to Nationwide's latest House Price Index.

They declined 11.3% year-on-year, which is an improvement on the 15% annual decline seen in April.

Martin Gahbauer, chief economist at Nationwide, says: "Although the short-term trend in house prices has clearly improved from where it was at the beginning of the year, it is still too early to say that the market is turning definitively."

But he adds: "Nonetheless, the improvement in house price trends is consistent with signs of a stabilisation in several other economic indicators and suggests that any further price declines may occur at a less rapid pace than in 2008."

Nick Hopkinson, director of Property Portfolio Rescue, says: "In reality, repossessions are up significantly on a year ago and unemployment is continuing to rise at an increasing rate. The wider economy is also shrinking fast.

"Furthermore, and perhaps most importantly for housing, most potential buyers still cannot get access to any kind of realistic mortgage finance. No one should be fooled by today’s data blip.”

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