LONDON (Reuters) – British home costs rose solely slowly once more in September, extending their weak run for the reason that 2016 Brexit vote, based on information revealed on Tuesday by mortgage lender Nationwide.
FILE PHOTO: Terraced homes are seen in Primrose Hill, London, Britain September 24, 2017. REUTERS/Eddie Keogh
Compared with September 2017, costs rose by 2.zero %, unchanged from August’s enhance and matching the slowest tempo of progress in 5 years.
That was barely above a median forecast of 1.9 % in a Reuters ballot of economists.
“Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low,” Nationwide economist Robert Gardner mentioned.
“Overall, we continue to expect house prices to rise by around 1 percent over the course of 2018.”
House costs based mostly on Nationwide’s index have been rising by about 5 % a 12 months on the time of the referendum choice to depart the European Union in June 2016.
Since then, many households have seen their spending energy pinched by inflation that has risen quicker than pay and uncertainty about Britain’s economic system exterior the EU has additionally weighed on the property market.
Nationwide mentioned costs rose by zero.three % in September from August after they fell by a month-to-month zero.5 %.
While costs are rising in some areas akin to Yorkshire and the East Midlands, they fell by zero.7 % in London within the three months to September in contrast with the identical interval final 12 months, the fifth quarterly fall in a row.
However, costs within the capital are solely about three % under a report excessive hit in early 2017 and are nonetheless greater than 50 % above their 2007 ranges, Nationwide mentioned.
Writing by William Schomberg; Editing by Andrew Heavens