House prices remained unchanged in May, according to the latest house market survey from Rightmove. Last month was also the first time they have not reported a month-on-month decline in prices in 20 months, the report says. Hometrack expects a combination of stronger sales volumes, continued buyer interest and a dwindling supply of property for sale has contributed to May’s steady figure although they suspect the worst is not yet over.
Richard Donnell from Hometrack said: ‘While house prices remain unchanged over May the outlook for the market remains fragile with a number of factors that could well de-rail the recent pick up in market activity. Given the weak outlook for the economy, house prices are expected to remain under downward pressure for the foreseeable future.
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However, overall levels of activity remain low, and willing purchasers returning to the market are confined to wealthy areas and low loan to value mortgages, the report points out, and further pressure on the market is expected later in the year before things pick up across the country.
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