LONDON -British home costs surged once more final month however a slowdown, attributable to the worsening cost-of-living crunch, is probably going on the best way, mortgage lender Nationwide mentioned on Wednesday.
Home costs rose by 0.9% month-on-month in Might after a 0.4% rise in April, marking a tenth consecutive month of features, Nationwide mentioned.
A Reuters ballot of economists had pointed to a 0.6% rise.
Home costs have been 11.2% greater than their degree in Might 2021, slowing from April’s 12.1% annual enhance.
Nationwide mentioned the power of home costs had been stunning, fuelled by demand outstripping the provision of properties coming to the market.
Nevertheless it warned home worth development was prone to cool within the months forward.
“Family funds are prone to stay below strain with inflation set to succeed in double digits within the coming quarters if world power costs stay excessive,” mentioned Robert Gardner, Nationwide chief economist.
Financial institution of England information on Tuesday confirmed a pointy drop in mortgage approvals in April, a possible signal of the slowdown forward.
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