House Prices Remained Static in May

In its latest house price index, Nationwide announced that prices had risen 0.3% in May, down only 1.1% compared to the same month in 2010.

Chief Economist at Nationwide, Robert Gardner said: "housing market demand has remained subdued, as evidenced by the still weak level of mortgage applications in recent months and the sluggish pace of new buyer inquiries reported by surveyors."

The Chief UK and European Economist at IHS Glbal Insight, Howard Archer, said: "We suspect that modest falls in house prices are likely, over the second half of 2011 and the first half of 2012.  We believe that house prices are likely to fall by around 8% overall from current levels by mid 2012."