UK house-price growth drops below 2% for first time since 2013 | Fin24
 
  • Labour trends

    Here's where you're most likely to find a job.

  • High returns

    SA's dagga belt could bring high returns for horticulture, says Wandile Sihlobo.

  • State capture

    8 things to know about Gordhan's first day at the state capture inquiry.

Loading...

UK house-price growth drops below 2% for first time since 2013

Nov 01 2018 09:52
David Goodman, Bloomberg

UK house-price growth dropped below 2% for the first time in five years, according to Nationwide Building Society.

In what it said was a “relatively subdued” market, average values rose 1.6% in October compared with a year earlier. That’s the weakest increase since mid-2013.

Nationwide reiterated its forecast for prices to rise about 1% this year.

The report on Thursday is more evidence Britain’s housing market is weakening after decades of booming prices. Stretched affordability is partly behind the pullback, while Brexit has created additional uncertainty about the economic outlook.

The Bank of England, which announces a policy decision at noon in London, says any interest-rate increases over the next few years will be limited and gradual as it lifts borrowing costs from historical lows.

“The squeeze on household budgets and the uncertain economic outlook is likely to have dampened demand, even though borrowing costs remain low by historic standardsand unemployment is at 40-year lows,” said Robert Gardner, Nationwide’s chief economist.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter and Facebook. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

uk  |  property  |  economy
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Was Momentum fair when rejecting R2.4m insurance claim?

Previous results · Suggest a vote

Loading...