RICS: Nationwide May house price figures

Commenting on Nationwide house price figures, David Stubbs, RICS senior economist said: "The difficulties in the mortgage market are stretching accessibility and threaten to reduce transaction levels by 40% this year. With buyers unable to secure financing on reasonable terms, some sellers are now choosing to cut prices. The market will only stabilise once transaction volumes recover. The Government and the Bank of England should continue to implement measures to restore the smooth functioning of the mortgage market, before the drop in transactions and prices begins to really hurt the economy."