UK house prices stabilise

Dhaka,  Tue,  25 July 2017
Published : 17 Jul 2017, 12:44:00
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UK house prices stabilise as buyers remain cautious

UK house prices stabilise
The prices of houses and apartments in England and Wales stabilised after a drop in June, but home-buyers remain cautious as wage growth falls behind inflation, a survey showed on Monday.

According to the survey by property website Rightmove, the figures were based on property advertised between June 11 and July 8, covering the weeks after Prime Minister Theresa May unexpectedly lost her majority in parliament, creating uncertainty for investors who were already on edge about Britain's exit from the European Union.

Rightmove said average asking prices for property sold on its website increased by a monthly 0.1 per cent in July, a month that usually sees slight falls in prices.

In annual terms, prices were up 2.8 per cent compared with a 1.8 per cent rise in June.

Other house price measures have shown a slowdown in growth this year, mirroring a weakening of the economy as consumers feel the pinch of rising inflation.

Rightmove director Miles Shipside said the market remained very price sensitive with some properties hitting a price ceiling. He also said that an eventual rise in mortgage costs would be a shock to buyers.

The Bank of England has is considering when to raise interest rates although most of its top officials have suggested now is not the time.

"Price rises are muted despite high housing demand, indicating we have left the stage of the cycle where price rises exceed the rate of inflation," Shipside said.

A jump in inflation to nearly 3.0 per cent has hurt the spending power of many people in Britain, contributing to a slowdown in the economy and in house price rises, according to Reuters.
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