Market Analysis

UK house prices increased in May, as per Nationwide's figures released on Friday.

The Nationwide house price index showed a seasonally adjusted 0.4% rise in UK house prices for May, recovering from a 0.4% decline in the previous month.

FXStreet noted that the market consensus had anticipated a modest 0.1% increase in the house price index.

In May, the average UK house price was GBP264,249, up from GBP261,962 in April.

On an annual basis, the house price index rose by 1.3%, accelerating from a 0.6% increase in April.

"The market seems to be demonstrating resilience despite ongoing affordability challenges due to recent rises in long-term interest rates. Consumer confidence has noticeably improved over the past few months, bolstered by solid wage gains and lower inflation," said Robert Gardner, Nationwide's chief economist.

Paraphrasing text from "Reuters" all rights reserved by the original author.