Call for your free quote 0800 955 0058

House prices decline for longest period since 2009, says Nationwide

01 Jun 2017 | News|House Prices

The housing market has recorded its third consecutive monthly fall in house prices for May, the first time this has occurred since 2009.

Data from Nationwide Building Society has revealed houses prices have reduced by -0.2% for the month in May following falls of -0.4% in April and -0.3% in March.

For the year the annual rate of growth has slowed to 2.1% the weakest rise in almost four years and further evidence the housing market is losing momentum with average price of a home at £208,711.

For first time buyers the recent fall in property values makes buying more realistic as they would require a smaller deposit or lower earnings to purchase their first home.

In contrast the older equity release mortgage buyer would find the lower values reducing the amount of wealth they can access from their property.

Property market slowing down

Robert Gardner, Nationwide's Chief Economist said the fall in property prices may be indicative of a wider slowdown in the housing sector though data continues to send mixed signals in this regard.

With rising inflation now ahead of wage growth, real incomes are under pressure making it harder to cover the costs of daily living including mortgage repayments.

The property market is being supported by a larger number of people in work as this has continued to rise and the unemployment rate has reduced to a 42-year low in the three months to March.

For home movers looking at buying a larger property, the slowdown could make their next home more affordable as they find the gap between their current home and the next is could be smaller.

With a slowing property market, it may be easier for remortgage buyers to stay in your existing home if you can and avoid the cost of moving.

In addition the election is unlikely to be the cause of the slowdown according to Mr Gardner.

Is the election depressing property prices

Historically the housing market has not been impacted around the time of the general election as first time buyers, home movers and buy-to-let landlords have other priorities when buying or selling.

Nationwide has analysed house price movements from six months before to six months after elections from 1997 including the EU referendum.

On the whole the prevailing trends have been maintained just before, during and after UK general elections, says Mr Gardner.

In terms of house purchase mortgage approvals three months before and after a UK general election, again there does not appear to be any clear impact.

It remains difficult to apportion the slowdown in house prices to a specific factor and it may be a combination such as pressure on household budgets due to inflation and affordability issues around the country.

Nationwide still expect house prices to rise by 2% in 2017 due to the lack of building activity and shortage of properties on the market.

What are your next steps?

Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.

Learn more by using the equity release mortgage calculator, mortgage cost calculators, and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.

For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to maintain your lifestyle, repay an interest only mortgage or even gift to a family member.

Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.

Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%

The latest mortgage news

25 Jun 2021

Seaside towns in Britain with house prices up 10pc due to strong demand

Demand for coastal living has seen house prices in Britain’s seaside towns rise 10% over the year as homeowners change their lifestyle.

24 Jun 2021

House prices at record levels with lack of property choice for buyers

Supply of properties on the market and available to buyers is an all-time low at the same time house prices are at record levels.

11 Jun 2021

Prices for house sales are rising four times faster than flats

Strong demand for houses has driven price growth up 5.2% in the last year which is over four times more than the 1.1% growth for flats.

28 May 2021

Fixed rate mortgage deals fall to under 1pc as lenders compete for borrowers

Fixed rate mortgages are cut to 0.99% for borrowers with large deposits looking to remortgage as competition increases from lenders.

Call for your free quote 0800 955 0058


    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.


    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.


    9th Floor, 30 Crown Place
    London, EC2A 4EB

    0800 955 0058


    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2021 © London City Mortgages.
    Website designed & developed by Spyre Media