Lockdown leads to historic rise in consumer debt repayments
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Nationwide data released this morning shows UK house prices fell at the fastest rate since the financial crisis, my colleague Julia Kollewe writes.
It came as would-be buyers said they would wait six months before returning to the housing market.
The average price of a home dropped 1.7% in May from the previous month to £218,902, according to
Nationwide Building Society, one of the UK’s largest mortgage lenders. This comes after April’s 0.9% gain and is the the biggest monthly fall since February 2009.
The annual growth rate slowed to 1.8%, down from 3.7% in April and the slowest since December.
Nationwide said potential buyers were now planning to wait six months on average before looking to enter the market, and that 12% of the population had put off moving because of the lockdown.
Robert Gardner, Nationwide’s chief economist, said:
The raft of policies adopted to support the economy, including to protect businesses and jobs, to support peoples’ incomes and keep borrowing costs down, should set the stage for a rebound once the shock passes, and help limit long-term damage to the economy.