UK house prices have fallen at the fastest rate since 2009 amid the coronavirus pandemic, Nationwide Building Society has revealed.
The monthly drop of 1.7% in May was the biggest since the financial crisis, meaning the average house price in the UK is now £218,902, compared to £222,915 in April.
This momentous drop followed a 0.9% increase in April, when annual growth was recorded at 3.7%. Now, the annual growth rate is 1.8%, the slowest since December.
Experts have predicted that house prices could fall anywhere between 3% and 30% this year because of Covid-19, after lockdown brought the market to an abrupt halt.
But these new figures from the Nationwide house price index indicate the size of the challenges facing the housing market and the UK economy.
Ross Counsell, director at Good Move, commented on the findings: “These numbers are largely down to the reduction in market activity due to social distancing measures, and is a real tell-tale sign for the future of home buying.”