LONDON (Reuters) – British home costs rose lower than anticipated in May, figures from mortgage lender Nationwide confirmed on Thursday, including to proof of a slowing property market because the 2016 Brexit vote.
House costs have been up by 2.four % within the yr to May, down from an increase of two.6 % in April and under all forecasts in a Reuters ballot of economists.
Prices fell by zero.2 % from April, the third time this yr that they have declined on a month-to-month foundation, the figures from Nationwide confirmed.
House costs are rising far more slowly than earlier than the 2016 referendum choice to take Britain out of the European Union, which hit shopper confidence and spending as a fall within the pound that adopted that vote pushed up inflation.
Nationwide’s measure of home costs was rising by about 5 % a yr across the time of the Brexit vote. The lender mentioned on Thursday it continued to count on home worth development of simply 1 % in 2018.
“There are few signs of an imminent change,” Nationwide Chief Economist Robert Gardner mentioned. “Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.”
The Bank of England has mentioned it expects to lift rates of interest solely steadily over the following three years and the scarcity of properties on the market can be anticipated to proceed to shore up costs.
Writing by William Schomberg; modifying by John Stonestreet