House price decline in May was steeper than expected

UK house prices fell more steeply than expected last month in what was the biggest quarterly drop in value in almost a year, as economic uncertainty continued to affect the property market.

- Mark Sweney

The average property price fell by 0.4% month on month in May to £296,648, more than the 0.1% decline City economists had expected.

Figures published by Halifax yesterday showed the cost of a typical UK property has fallen in three of the past four months, with the drop in May following a 0.3% rise in April. The fall last month pushed the quarterly change in house prices down 0.3%, the steepest fall since June last year.