UK house prices drop in May; markets brace for US jobs report

The Guardian

a day ago

Update:
Date: 2025-06-06T06:23:39.000Z
Title: UK house prices dip in May
Content: British house prices fell by more than expected in May, new figures from mortgage lender Halifax showed on Friday.
Halifax said house prices fell by 0.4% in May, more than reversing a 0.3% increase in April. Economists had only expected a fall of 0.1%.
According to Halifax, average property price was £296,648 last month, down from £297,798 last month.
On an annual basis, house prices were 2.5% higher on the year – again less than expected.
Amanda Bryden, head of mortgages at Halifax, says the broader picture is that the housing market that has remained largely stable in 2025, with average prices down by just -0.2% since the start of the year.
Bryden adds:
The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty.
Affordability remains a challenge, with house prices still high relative to incomes. However, lower mortgage rates and steady wage growth have helped support buyer confidence.
The outlook will depend on the pace of cuts to interest rates, as well as the strength of future income growth and broader inflation trends. Despite ongoing pressure on household finances and a stilluncertain economic backdrop, the housing market has shown resilience – a story we expect to continue in the months ahead.'
Update:
Date: 2025-06-06T06:23:14.000Z
Title: Markets brace for US jobs report, after explosive Trump-Musk row
Content: Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Investors will have one eye on the US jobs market today, and the other on the spectacular blow-up between Donald Trump and Elon Musk overnight.
The latest US employment report is expected to show a slowdown in hiring across the US in May.
Economists forecast that the US non-farm payroll will have risen by around 130,000 in May, down from the 177,000 increase recorded in April, with the unemployment rate sticking at 4.2%.
Median NFP estimate: 126k pic.twitter.com/imJpaGE3pH
A weak payrolls report could fuel fears that the US economy is slowing, as Trump's trade wars hit activity. But it could also intensify the pressure on the US Federal Reserve to lower interest rates, something the US president has been demanding for months.
Tony Sycamore, market analyst at IG, explains:
The US unemployment rate has hovered between 4.0% and 4.2% over the past year, and a job in the unemployment rate to 4.3% or higher will heighten economic slowdown fears. The US rates market is pricing in an 85% chance of a 25bp Fed rate cut in September, with a cumulative 55bp in cuts expected by year-end.
So the markets could be volatile at 1.30pm UK time, when the non-farm payroll data lands.
Speaking of volatility… the Trump-Musk relationship exploded dramatically on Thursday, with the president and the world's richest person slinging accusations at each other.
Shares in Tesla slumped over 14%, wiping over $150bn off the company's value, as Trump threatened to terminate Musk's governmental subsidies and contracts, and accused the billionaire of going 'CRAZY!' over the removal of electric car subsidies.
From the other corner, Musk called for Trump's impeachment, claimed the president appeared in the files into convicted sex offender Jeffrey Epstein, and briefly threatened to decommission SpaceX's Dragon spacecraft.
It all added up to another bruising day for shareholders in Tesla, whose value had already been hit by the backlack against Musk's role in the Trump Administration.
Some traders will have been betting on further falls in Tesla's share price, as Chris Weston, head of research at Pepperstone, explains:
The selling in Tesla stock on the day has been wholly impressive with 285m shares traded on the day – the most since Jan 2023 – with a 'sell first, ask questions later' mentality sweeping through the shareholder base.
In the options space, over 4m put options traded hands, 4x the 20-day average.
7am BST: Halifax house price index
8.30am BST: UN FAO food price index
10am BST: Eurozone GDP report for Q1 2025 (3rd estimate)
11.30am BST: Bank of Russia interest rate decision
1.30pm BST: US non-farm payroll report