House price growth rebound in May shows market resilience – Nationwide

House prices rose by 0.4% month on month in May, Nationwide’s latest House Price Index has revealed.

This was compared to the modest -0.4% decrease recorded in April.

The average non-seasonally adjusted house price was £264,249, a slight rise from £261,962 the month prior.

This demonstrated an annual growth rate of 1.3%, picking up from 0.6% in April.

Robert Gardner, chief economist at Nationwide, said: “UK house prices increased by 0.4% in May, after taking account of seasonal effects.

“This resulted in a slight pickup in the annual rate of house price growth to 1.3% in April, from 0.6% the previous month.

“The market appears to be showing signs of resilience in the face of ongoing affordability pressures following the rise in longer term interest rates in recent months.

“Consumer confidence has improved noticeably over the last few months, supported by solid wage gains and lower inflation.”


Nathan Emerson, CEO of Propertymark:

“The housing sector has seen a strong start to the year and it’s positive to see further momentum.

“We are conscious there may be a potential slow down across the summer as a knock-on effect following the General Election, but with inflation firmly on its journey downward and with scope for interest rate cuts, we may soon see a much welcome influx of highly competitive deals from lenders hit the marketplace.”

Guy Gittins, Foxtons CEO:

“Mortgage approvals have been climbing consistently throughout the year and despite last week’s news of a General Election we saw weekly new applicant enquiry numbers hit a five year high, demonstrating just how much buyer confidence has grown in 2024.

“Not only has there been an uplift in buyer activity, but we’re also seeing more sellers return to the fold in order to take advantage of this growing market momentum with the number of offers being accepted at its highest since 2016.

“This positive start to the year has come despite interest rates remaining at 5.25% and as market sentiment has improved, this has naturally led to a greater degree of positive property price growth.

“Going forward, we don’t anticipate that the impending general election will dampen this growing market sentiment and we expect further growth will materialise over the summer months as the market continues to heat up, particularly with the possibility of an interest rate cut firmly on the horizon.”

Ruth Beeton, co-founder of Home Sale Pack:

“Market activity has accelerated significantly since the start of the year and a surge in buyer activity has helped to revitalise the rate of house price growth being seen on both a monthly and annual basis.

“Of course, the downside to an uptick in activity is the pressure it places on the market itself and, as activity continues to build, the time it takes to push a sale through to completion is likely to increase as well.

“For those considering a move in 2024, now is the time to get your house in order for the best chance of spending Christmas in your new home.”

Marc von Grundherr, director of Benham and Reeves:

“Not only are house prices up year on year, but this rate of growth has started to accelerate as the UK property market picks up the pace during its busiest time of year.

“While the nation may now be gripped by political uncertainty following the news of a General Election, this will have little impact on the nation’s buyers and sellers, who will continue to pursue their plans to move regardless of who is in 10 Downing Street come July.”

Verona Frankish, CEO of Yopa:

“Despite a prolonged period of higher interest rates we’re yet to have seen any notable decline in property values and it seems as though the tide has now well and truly turned, as the market starts to build momentum following a resurgence in market activity so far this year.

“The possibility of a base rate reduction in the coming months will only help to boost current sentiment and we expect the market to march on undeterred by the political noise being generated from the impending election.”

Ed Phillips, Lomond CEO:

“Having stood firm in the face of higher interest rates, the UK property market is now building a good head of steam and a spring surge in market activity has helped to drive positive house price growth in recent months.

“This puts the market in very good stead for the remainder of the year and we expect market activity will only build as more buyers and sellers look to make their move in anticipation of a rate reduction in the coming months.”

Nicky Stevenson, managing director at Fine & Country:

“House prices had been yo-yoing from economic gales, but May’s figures indicate calmer waters ahead for the housing market.

“Previously hesitant home buyers are feeling more confident to pull the trigger on moving plans as financial strains ease. 

“With inflation moving closer to the government’s 2% target and potential interest rate cuts this summer, demand may surge further into 2024.

“This will help to stabilise or even nudge prices upwards amid buyer competition – a positive development for sellers. 

“Lenders are also lowering rates in response to more favourable conditions, making homeownership more attainable, especially for first-time buyers previously deterred by high monthly payments or excessively long mortgage terms.

“If current trends persist, the UK housing market could experience a steady rebound, with prices rising moderately in popular areas and hot markets. 

“However, affordability concerns may linger, particularly for those on lower incomes or in regions with high living costs.”

Karen Noye, mortgage expert at Quilter:

“The housing market continues to demonstrate its considerable resilience in the face of tough economic conditions, with Nationwide reporting a 0.4% rise in house prices for May, following a period of subdued growth.

“This is likely in part due to the annual spring bounce as more buyers come to market making it more competitive.

“However, on an annual basis, prices have increased by 1.3% .The slight uptick suggests some stability, albeit under challenging conditions.

“Nationwide’s data reflects a modestly positive trend, but the housing market remains very unpredictable and the growth in house prices is modest.

“Monthly property transactions have been lower than expected, indicating a cautious market but this is no surprise given the stress the nation’s finances have been under.

“Affordability remains a significant challenge, particularly for first-time buyers who face rising mortgage rates and the ongoing pressures of living costs.

“The dearth of these buyers makes it tricky for the market to operate due to incomplete chains.

“The volatility of mortgage rates driven by expectations of a longer period before interest rate cuts by the Bank of England, continues to dampen market activity.

“This environment makes it harder for new buyers to save for deposits and secure affordable mortgage deals.

“Whether the election adds another layer of unpredictability for buyers is yet to be seen but it is unlikely that this will change too many homebuying plans.

“The broader economic factors such as interest and continued lower inflation are more likely to influence buying decisions in the short term.

“Current prime minister Rishi Sunak is setting himself up as the candidate to bring lower interest rates but the reality is we are already on that trajectory given the recent inflation print.

“However, it is one area where he can play to a younger voter base after courting the grey vote with the promise never to tax state pensions.

“Attention now turns to the Bank of England’s upcoming monetary policy decision and what it intonates as a plan for the rest of the year.

“While no immediate changes in interest rates are expected, a future cut could provide a much-needed boost to the housing market.

“Lower borrowing costs would likely stimulate demand, as many prospective buyers are currently waiting for more favourable conditions.”

Michelle Stevens, mortgage expert at

“A lot of uncertainty still surrounds the UK housing market, but today’s figures show that buyer demand is strengthening.

“The Bank of England is widely predicted to cut rates in the coming months, and as a result buyers who have so far held off are beginning to return to the market.

“However, despite inflation falling to the lowest rate since September 2021 last month, it’s important to remember that many households are still struggling to make ends meet, and therefore affordability issues remain.

“Because of this, it’s unlikely that we’ll see UK house prices sprint away in 2024, but there are encouraging signs of recovery.”