Housing prices in the UK saw their first annual decline since June 2012, when the corona virus continued to hover above the housing market, according to the Nationwide Building Society.
Values fell 0.1% year over year to an average of £ 217.403 ($ 267,000), the mortgage lender said on Wednesday. On a monthly basis, prices fell 1.4%.
The property market, which has been almost closed for weeks thanks to the country's closure, is now experiencing a slump from a slump in economic growth as it slowly reopens. The activities are anything but normal. Many real estate agents are turning to virtual tours, while actual sales in May were 50% lower than in 2019.
"It is not surprising that annual house price growth has stalled given the scale of the economic shock caused by the pandemic," said Robert Gardner, chief economist at Nationwide. "The medium-term prospects for the real estate market remain extremely uncertain."
Rising unemployment and the increasing unwillingness of lenders to take risks mean that the outlook is unlikely to improve dramatically.
Nationwide itself increased last month's minimum deposit, which first-time buyers had to raise from 5% to 15% to avoid the possibility of falling prices, and increased the upfront cost of buying a home by tens of thousands of pounds.