Iran war uncertainty and rises in energy prices and interest rates cause ‘loss of momentum’, says Nationwide
House prices were 0.6% lower in May compared to the previous month, according to Nationwide’s latest house price index.
Annual house price growth has slowed to 1.7% in the year to May, compared to 3% in April.
Robert Gardner, chief economist at Nationwide, said “Given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates, some loss of momentum was to be expected.”
Analyst Anthony Codling, managing director at RBC Capital Markets, said: “The culprit is no mystery: the conflict in the Middle East has pushed energy prices and market interest rates higher, drained consumer confidence and made mortgage pricing unpredictable. The housing market has not fallen off a cliff, but it is clearly looking over the edge.”
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