LONDON (Reuters) – British home costs rose solely slowly once more in September, extending their weak run because the 2016 Brexit vote, in keeping with knowledge revealed on Tuesday by mortgage lender Nationwide.
FILE PHOTO: A row of homes are seen in London, Britain June three, 2015. REUTERS/Suzanne Plunkett
Compared with September 2017, costs rose by 2.zero p.c, unchanged from August’s enhance and matching the slowest tempo of development in 5 years.
That was barely above a median forecast of 1.9 p.c 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 stated.
“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 p.c a yr on the time of the referendum resolution to depart the European Union in June 2016.
Since then, many households have seen their spending energy pinched by inflation that has risen sooner than pay and uncertainty about Britain’s financial system exterior the EU has additionally weighed on the property market.
Nationwide stated costs rose by zero.three p.c in September from August after they fell by a month-to-month zero.5 p.c.
While costs are rising in some areas similar to Yorkshire and the East Midlands, they fell by zero.7 p.c in London within the three months to September in contrast with the identical interval final yr, the fifth quarterly fall in a row.
However, costs within the capital are solely about three p.c beneath a file excessive hit in early 2017 and are nonetheless greater than 50 p.c above their 2007 ranges, Nationwide stated.
Writing by William Schomberg; Editing by Andrew Heavens