Experts had put out warnings that an increase in the interest rate by the Bank of England’s Monetary Policy Committee (MPC) was on the horizon. There was an expectation that the possibility of higher interest rates would push hopeful home buyers to take action and be aggressive to buy. However, the average house price for the month of May fell by 0.2% in May according to the data released by Nationwide.

The economic slow-down is thought to have had more of an impact than the warning of having to face a mortgage with higher interest rates.

The released data revealed May’s average house price was £213,618.

Nationwide’s Robert Gardner, their chief economist, stated “There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer inquiries, while the supply of properties on the market remains more of a trickle than a torrent.

“Looking further ahead much will depend on how broader economic conditions evolve, especially in the labor market, but also with respect to interest rates.

“Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low.”

Despite the slow-down in the housing market data from Nationwide, it is not expected that the following months will fail to report the usual seasonal boost in home sales. In the late spring and summer, home buyers are likely to show up to the market and take advantage of low interest rate mortgages as they have in the past. Warmer weather is always helpful in boosting the housing market and that is hopeful news to homeowners keeping an eye on their growing equity or looking to remortgage.

Meanwhile, the possibility of a hike to the standard base interest rate is still in play, but not likely to occur until after summer. That offers more time for hopeful home buyers to shop for a new home and grab their mortgage while interest rates are so attractive to borrowers.