The UK housing market lost momentum in May as higher borrowing costs and affordability pressures weighed on demand. The Nationwide House Price Index fell 0.6% month-over-month, a much steeper decline than the 0.1% decrease expected by economists and a sharp reversal from April's 0.4% increase.

On an annual basis, house price growth slowed significantly to 1.7% from 3.0% previously, indicating that the pace of appreciation in the housing market continues to moderate.