United Kingdom: House prices growth slackens in March
April 3, 2017
House prices in the United Kingdom dipped 0.3% in March compared to the previous month in seasonally adjusted terms, contrasting the 0.6% increase observed in February, according to the Nationwide Building Society (NBS). On an annual basis, house prices rose 3.5% in March, down from 4.5% in February. The average house price in March was GBP 207,308 (March 2016: GBP 200,251).
According to the NBS, regional housing price disparities lessened in the first quarter of this year, with the gap between house the rise in house prices in the North of England and the South of England narrowing. Six regions saw house price growth increase in Q1, while the same number recorded a deceleration. The NBS forecasts an uptick in prices this year, propped up by low borrowing costs and a continuing housing shortage. However, in the NBS’s view any price rise is likely to be moderate, with the economy set to slow as uncertainty dampens investment and consumers’ purchasing power is dented by the impact of higher inflation.
Author: Oliver Reynolds, Economist