U.K. Housing Market Tepid in May in Mirror of Broader Economy

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U.K. house-price growth remained subdued in May as Brexit continued to cloud the outlook for the wider economy, according to Nationwide Building Society.

Values rose 0.6% from a year earlier, a sixth month below 1% and still well under levels seen in 2018, the lender said Friday. On the month, prices slipped 0.2% to an average of 214,946 pounds ($270,000).

Britain’s departure from the European Union is still creating political chaos and undermining investment. But support is coming from rock-bottom interest rates and record employment, preventing both the economy and the property market from experiencing a sharper downturn.

“Housing market trends are likely to continue to mirror developments in the broader economy,” said Robert Gardner, Nationwide’s chief economist. “While healthy labor market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity.”

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Fergal O'Brien

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