The U.K. housing market is softening as home prices and housing confidence dip to new lows. Home prices just recorded their largest monthly drop in eights years, and confidence in housing prices fell to its lowest point in five years. Last month, average home prices across the U.K. dropped to £220,962 (US$299,335).
Although house prices are softening in the U.K., annual gains are expected to stay positive throughout the rest of the year. Strong economic fundamentals should keep annual price growth within the range of 0-3% in 2018.
- U.K. home prices decreased 3.1% month-over-month in April, the largest drop since September 2010
- Confidence in U.K. housing prices dropped to about 50% in April, the lowest it has been since 2013
- Mortgage approvals and completed home sales have been declining since the start of 2018
U.K. home prices fell sharply in April, further signaling that the housing market is weakening, according to Halifax, the country’s biggest mortgage lender.
Last month, average house prices across the U.K. declined 3.1% from March to £220,962 (US$299,335), marking the largest monthly drop since September 2010, according to Halifax, which is part of Lloyds Banking Group.
Also, confidence in U.K. housing prices remained the lowest level since 2013. About half of consumers surveyed expected prices to rise, down from 58% a year ago, according to a Halifax report released in April.
The downward price trend was the latest sign that the housing market in the U.K. is softening, said Russell Galley, managing director at Halifax, in the report released Tuesday.
“The U.K. labour market is performing strongly with unemployment continuing to fall and wage growth finally picking up,” he wrote in the report. “These factors should help to ease pressure on household finances and as a result, we expect annual price growth will remain in our forecast range 0-3% this year.”
View the original article at Mansion Global