Swindon based Nationwide building society has announced that house prices have seen the largest monthly fall for 11 years - as the coronavirus crisis hits market activity.
The building society said that prices for homes fell by 1.7 per cent in May from the previous month - reversing a steady increase in the market before the pandemic struck the UK.
Annual house price growth halved from 3.7% to 1.8% and the latest HMRC data shows that residential property transactions fell 53% in April compared with 2019.
Nationwide chief economist Robert Gardner said: "The medium-term outlook for the housing market remains highly uncertain.
"We have already seen a sharp economic contraction as a result of the necessary measures adopted to suppress the spread of the virus."
But he added that policies adopted to support the economy should "set the stage for a rebound once the shock passes".
The figures, based on Nationwide's lending data, do not include cash purchases..
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