The latest survey by Nationwide reveals that house prices across the UK fell at the fastest rate during May since the global financial crisis over a decade ago. Nationwide observed an average decline of 1.7% MoM in house prices for the month of May. The rate of price growth fell from 2.7% YoY in April to 1.8% YoY for the period.

According to chief economist at Nationwide, Robert Gardner, “In the opening months of 2020, before the pandemic struck the UK, the housing market had been steadily gathering momentum. But housing market activity has slowed sharply as a result of the measures implemented to control the spread of the virus.”

Official figures released by the Bank of England during the previous session also revealed that mortgage approvals fell by 80% since February to April, to 15,800. Remortgage approvals with new lenders also registered a decline by 34% during the period to touch 34,400.

Estate agents, however, remain cautiously optimistic that the decline is not as severe as feared, despite the complete lockdown that was implemented across the country. In addition, ever since the easing of the lockdown restrictions began, inquiries by consumers have also started rising signalling increasing interest in viewings and sales of houses in the UK.