"House price growth falling to a near five-year low might seem music to the ears of would-be first-time buyers"
Its data shows that the drop in UK house price growth is driven mainly by a slowdown in the south and east of England.
The lowest annual growth was in London, where prices decreased by 0.4% over the year. This is the fourth consecutive month that London house prices have fallen over the year.
The East Midlands showed the highest annual growth, with prices increasing by 6.3% in the year to May 2018.
On a seasonally adjusted basis, average house prices in the UK decreased by 0.2% between April 2018 and May 2018, compared with an increase of 0.4% in average prices during the same period a year earlier.
John Eastgate, sales and marketing director at OneSavings Bank, said: “House price growth falling to a near five-year low might seem music to the ears of would-be first-time buyers, however the reality is that even at this subdued level, house price inflation continues to outstrip wage inflation, so the tune is a bit flat.
"With our turbulent political environment, clarity on housing policy in the short term seems highly unlikely, hence despite the ever increasing clamour around the topic, the status quo looks set to continue for some time – getting a mortgage will be challenging and renting will be the only viable alternative.”
John Goodall, CEO and co-founder of Landbay, commented: “House prices succumbed to an early summer slowdown in May, helping to provide a slight respite for those hoping to get a foot on the property ladder. However, the overall cost of living and outstandingly high deposit costs continue to prevent many aspiring homeowners from entering the market."
Ishaan Malhi, CEO and founder of Trussle, added: “House prices are rising at a slower pace than they have been over the past few decades. While we’re beginning to see property prices stabilise, purchasing a first home still feels like a huge leap for many.
"Schemes such as the Help to Buy ISA can help first-time buyers save a higher amount, but more needs to be done to help people get onto the property ladder during uncertain times. With the appointment of yet another new Housing Minister, confidence in the housing market is low. We need to encourage widespread innovation and stable leadership to achieve the nation’s dreams of owning their own homes.”
