RICS: Nationwide May house price index

Commenting on the Nationwide house price index, Simon Rubinsohn, RICS chief economist says: "The latest data from the Nationwide Building Society provides further evidence that house prices appear to be stabilising. This is consistent with the recent trend in the RICS sales-to-stock ratio which has now risen for four consecutive months; historically a good lead indicator of turning points in house price inflation. The lack of new supply of houses coming onto the market is a key driver for the current turnaround in prices. The RICS new instructions series (part of the RICS monthly Housing Markey Survey) has fallen consistently for the past two years as would-be vendors have either turned to the rental market or decided to stay put rather than attempt to move in, what has been, a particularly challenging environment. This has left estate agents with little fresh stock to offer potential purchasers who have flocked to the market in recent months. Even though house prices do appear to be rising in some particularly desirable locations at the present time, it would be premature to assume a more general reversal of the slide in house prices in the near term."