United Kingdom: Home prices fall in March
March 29, 2012
In March, the average price of a typical U.K. property decreased a seasonally adjusted 1.0% over the previous month, according to data collected by the Nationwide Building Society (NBS). The print contrasted the 0.4% increase seen in February and, in fact, represented the sharpest monthly drop since February 2010. In annual terms, home prices dropped 0.9%, which contrasted the 0.9% increase observed in February and marked the first annual drop in six months. According to the NBS, a slowdown was to be expected, given the imminent expiry of the stamp duty holiday, which had provided a temporary boost to house prices in early 2012. Moreover, the NBS is not very optimistic on home prices going forward, as economic activity is expected to remain subdued, which would prompt home prices to move sideways or modestly lower over the next twelve months.