UK House Prices Unexpectedly Fall

RTTNews | 53 days ago
UK House Prices Unexpectedly Fall

(RTTNews) - UK house prices declined unexpectedly in April, reflecting affordability pressures amid rising longer term interest rates, data published by the Nationwide Building Society revealed on Wednesday.

House prices posted a monthly decline of 0.4 percent after easing 0.2 percent in March. Prices were expected to climb 0.1 percent.

On a yearly basis, house price growth eased more-than-expected to 0.6 percent from 1.6 percent in March. Prices were forecast to rise 1.2 percent.

"The slowdown likely reflects ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year," Nationwide Chief Economist Robert Gardner said.

Gardner said house prices were around 4 percent below the all-time highs recorded in the summer of 2022.

A recent research conducted by Censuswide, on behalf of Nationwide, showed that nearly half of prospective first-time buyers delayed their plans due to too high house prices and higher mortgage costs. About 84 percent of prospective first-time buyers said the cost of living affected their plans to buy. The research also indicated that 55 percent said they would be willing to buy in another part of the country where house prices are cheaper, or where they could buy a larger property.

Official data released this week were upbeat. Mortgage approvals rose to an 18-month high of 61,300 in March.

Over the last five consecutive meetings, the Bank of England has kept its interest rate unchanged at 5.25 percent, the highest level since early 2008.

read more
UK Private Sector Grows At Slowest Pace In 7 Months

UK Private Sector Grows At Slowest Pace In 7 Months

The UK private sector growth weakened to a seven-month low in June as the slowdown in the service sector growth offset the stronger performance in manufacturing, flash survey results published by S&P Global revealed on Friday. The flash composite output index dropped unexpectedly to 51.7 in June from 53.0 in May. The score was forecast to rise marginally to 53.1.
RTTNews | 2 days ago
UK Public Debt Highest Since 1960s; Budget Deficit Remains Below Estimate

UK Public Debt Highest Since 1960s; Budget Deficit Remains Below Estimate

The UK public sector net debt rose to its highest level since early 1960s, while public sector borrowing remained below the official estimate, the Office for National Statistics reported Friday. Public sector net debt excluding public sector banks was estimated at 99.8 percent of gross domestic product at the end of May. This was 3.7 percentage points more than at the end of May 2023.
RTTNews | 2 days ago
UK Retail Sales Rebound In May

UK Retail Sales Rebound In May

UK retail sales rebounded in May as sales across all sectors recovered after poor weather damped turnover in April, official data revealed on Friday. The retail sales volume grew 2.9 percent on a monthly basis, offsetting the 1.8 percent fall in April, the Office for National Statistics reported. The growth also exceeded economists' forecast of 1.5 percent.
RTTNews | 2 days ago
Bank Of England Holds Rate At 16-Year High Despite Slowing Inflation

Bank Of England Holds Rate At 16-Year High Despite Slowing Inflation

The Bank of England retained its key policy rate on Thursday at a 16-year high despite inflation easing to the 2 percent target as policymakers are still concerned about services inflation and wage growth. The Monetary Policy Committee, led by Governor Andrew Bailey, decided to hold the bank rate at 5.25 percent again in a split vote. The current bank rate is the highest since early 2008.
RTTNews | 3 days ago
UK Inflation Eases To 2% Target

UK Inflation Eases To 2% Target

UK consumer price inflation hit the 2 percent target in May, data from the Office for National Statistics showed on Wednesday. Consumer price inflation softened to 2.0 percent in May, as expected, from 2.3 percent in April. The central bank targets to keep inflation at 2 percent.
RTTNews | 4 days ago
UK Economy Flatlines As Election Looms

UK Economy Flatlines As Election Looms

The UK economy stagnated in April as services growth was offset by falls in production and construction output, which was largely caused by an unusually wet weather, and dealt a setback to Prime Minister Rishi Sunak ahead of the July 4 general election. Gross domestic product remained flat on month, as expected, after expanding 0.4 percent in March, the Office for National Statistics said Wednesd
RTTNews | 11 days ago
UK Jobless Rate Falls; Wage Growth Remains Strong

UK Jobless Rate Falls; Wage Growth Remains Strong

The UK unemployment rate fell to the lowest since the middle of 2021 but the wage growth remained strong in three months to April, adding weight to the view that the next Bank of England interest rate cut will be in August. The unemployment rate rose to 4.4 percent in the three months to April from 4.3 percent in three months to March, the Office for National Statistics reported.
RTTNews | 12 days ago
UK Job Placements Fall At Slowest Pace In More Than A Year: KPMG/REC Report

UK Job Placements Fall At Slowest Pace In More Than A Year: KPMG/REC Report

UK permanent staff appointments fell for the twentieth consecutive month in May but the pace of decrease was the softest since March 2023, a report compiled by S&P Global showed on Monday. Recruitment consultants cited delayed decision making and a lack of demand amongst companies as reasons for the fall in recruitment activity, the KPMG/REC Report on Jobs revealed.
RTTNews | 13 days ago