Recently released data regarding the current climate of the UK housing market did not surprise many economists. Factors affecting consumer confidence changed little month on month during the month of May. Transactions and approvals remained consistent as we enter the busy selling season within the housing market. Summer is quickly approaching which could affect first time buyer interest as well as those who have been on the fence about moving home or staying put.

The latest Nationwide house price index has been released with little change from the month of April. House prices cooled a bit month on month, but remained consistent. Prices fell 0.2%.

Demand also appeared to fall slightly as house prices slid year on year by 0.6% in the month of May. This is a slight change from the year on year dip prices took in April which was 0.9%.

The study did reveal a small change in interest of first time buyers. Almost 360,000 reported in the last twelve months to March of this year. First time buyers are the backbone of the market and greatly impact the strength of the market going forward. In recent years it has become harder and harder for first timers to overcome the challenge set by such high first time deposits on properties. Inflation remains ahead of the pace of income growth.

Robert Gardner, chief economist at Nationwide, commented on the latest survey, saying: “Survey data suggests that new buyer inquiries and consumer confidence have remained subdued in recent months. Nevertheless, indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable.”