LONDON, June 1 (Reuters) - British house prices fell by the most since 2009 in the 12 months to May and the country's housing market faces further headwinds after a recent jump in borrowing costs, mortgage lender Nationwide said on Thursday.
Compared with May last year, the average house price was down 3.4% after a 2.7% annual fall in April, Nationwide said.
House prices edged down by 0.1% in May from April after a monthly 0.4% rise in April, Nationwide said.
Martin Beck, an economist with the EY Item Club, a forecasting group, said the 4% fall in house prices from last August's peak was modest compared with the 7% rise in house prices over the past two years.
Analysts at Capital Economics said prices would fall another 8% while Pantheon Macroeconomics said they would drop 4%.
Persons:
Liz Truss's, Headwinds, Robert Gardner, Gardner, Martin Beck, BoE, Beck, William Schomberg, Muvija M, Paul Sandle, Christina Fincher
Organizations:
Nationwide, Bank of, Capital Economics, Thomson
Locations:
Bank, Bank of England