LONDON (Reuters) – British home costs within the three months to October rose at their weakest annual fee in additional than 5 years, main mortgage lender Halifax mentioned on Wednesday, including to current indicators of a housing market slowdown.
FILE PHOTO: A employee drives a dumper truck previous a home being constructed on a development web site in Chester, northern England March 20, 2013. REUTERS/Phil Noble/File Photo
Annual home worth progress slowed to 1.5 p.c within the three months to October from 2.5 p.c within the three months to September, Halifax mentioned, the bottom fee since March 2013 although a barely smaller fall than predicted in a Reuters ballot.
Halifax mentioned it continued to count on home worth progress in 2018 to be inside a zero to three p.c vary.
“House prices continue to be supported by the fact that the supply of new homes and existing properties available for sale remains low,” the lender, a part of Lloyds Banking Group (LLOY.L), mentioned.
Britain’s housing market has slowed general since early 2016, notably in London and close by areas the place greater buy taxes on homes costing over 1 million kilos ($1.three million) and diminished overseas investor curiosity because the Brexit vote have had the most important impression. Outside London, home costs are rising extra strongly.
In Britain as a complete, home costs grew by zero.7 p.c on the month in October alone after a 1.three p.c decline in September, Halifax mentioned.
“Housing market activity continues to struggle to gain momentum and we suspect the upside will remain limited over the coming months — although there are varying performances across regions,” mentioned Howard Archer, an economist at consultants EY ITEM Club.
Last week rival mortgage lender Nationwide reported an identical slowdown in home costs to a five-year low of 1.6 p.c.
The most up-to-date knowledge from Britain’s Office for National Statistics, for the 12 months to August, additionally confirmed a slowdown to a five-year low of three.2 p.c.
($1 = zero.7607 kilos)
Reporting by David Milliken; Editing by Matthew Mpoke Bigg