UK House Prices in May Took Biggest Drop Since the Financial Crisis in 2009

UK house prices in May fell at their fastest rate since 2009 amid the coronavirus crisis.

A recent survey from Estate Agents across England showed that house prices across the UK fell at the fastest rate since the financial crisis in May with potential buyers saying they would wait at least six months before returning to the housing market.

According to the report from the Nationwide Building Society, one of the UK’s largest mortgage lenders, the average price of a home dropped 1.7 per cent in May from the previous month to £218,902. This comes after April’s 0.9 per cent gain and is the biggest monthly fall since February 2009.

The figures came as the UK continues to lift its coronavirus lockdown, which has been in place since March. Last month, the government said construction sites could open if it were safe to do so, along with factories.

But the outlook for the housing market remains highly uncertain, said Robert Gardner, Nationwide’s chief economist. “Behavioural changes and social distancing are likely to impact the flow of housing transactions for some time,” he said.

Gardner said that would-be buyers are “now planning to wait six months on average before looking to enter the market.” The annual growth rate slowed to 1.8 per cent, down from 3.7 per cent in April and the slowest since December.