UK House Prices Log First Fall Since Mid-2020 - Nationwide

RTTNews | 832天前
UK House Prices Log First Fall Since Mid-2020 - Nationwide

(RTTNews) - UK house prices registered the first annual fall since June 2020 as squeeze on household income from higher interest rates and inflation damped demand in the property market, data from Nationwide Building Society showed Wednesday.

House prices declined 1.1 percent on a yearly basis in February, offsetting the 1.1 percent increase in January. Economists had forecast a 0.9 percent fall.

This was the first annual decline since June 2020 and also the biggest fall since November 2021.

Month-on-month, house prices dropped 0.5 percent, following a 0.6 percent fall in January. Prices were forecast to ease 0.4 percent in February.

"The recent run of weak house price data began with the financial market turbulence in response to the mini-Budget at the end of September last year," Robert Gardner, Nationwide's chief economist, said.

"While financial market conditions normalized some time ago, housing market activity has remained subdued," Gardner added.

The economist noted that weak consumer confidence and the cumulative impact of the financial pressures weighed on households' decision on house purchases.

"It will be hard for the market to regain much momentum in the near term since economic headwinds look set to remain relatively strong, with the labor market widely expected to weaken as the economy shrinks in the quarters ahead, while mortgage rates remain well above the lows prevailing in 2021," Gardner said.

Nationwide expects housing market conditions to gradually improve if inflation moderates in coming months, easing pressure on household budgets.

The Bank of England has raised its benchmark interest rate by 390 basis points since the current tightening cycle began in December 2021.

Although inflation eased in January, the rate remained at a double-digit 10.1 percent.

The BoE forecast inflation to reach around 4 percent towards the end of this year and to hit the 2 percent target sustainably in the medium term.

read more
UK Halifax House Prices Fall Unexpectedly

UK Halifax House Prices Fall Unexpectedly

UK house prices declined unexpectedly in May after the stamp duty holiday ended in March, data from the mortgage lender Halifax revealed on Friday. House prices dropped 0.4 percent month-on-month in May, in contrast to the 0.3 percent increase in April. Prices were expected to grow 0.4 percent. On a yearly basis, house price inflation softened to 2.5 percent in May from 3.2 percent in April.
RTTNews | 3天前
UK Construction Sector Downturn Softens In May

UK Construction Sector Downturn Softens In May

The UK construction sector contracted at a slower pace in May as the fall in new orders hit the slowest in four months, survey data from S&P Global showed on Thursday. The construction Purchasing Managers' Index posted 47.9 in May, up from 46.6 in April. The indicator suggested the slowest reduction in output volumes since January.
RTTNews | 4天前
UK Manufacturing Sector Shrinks Sharply

UK Manufacturing Sector Shrinks Sharply

The UK factory sector shrank further in May as the weak global demand, trade tensions and rising cost burdens weighed on production and new orders, the purchasing managers' survey results from S&P Global showed on Monday. The final manufacturing PMI rose to a three-month high of 46.4 in May from 45.4 in April. The reading was also above the flash estimate of 45.1.
RTTNews | 7天前
UK Mortgage Approvals Fall Unexpectedly; House Prices Rise

UK Mortgage Approvals Fall Unexpectedly; House Prices Rise

UK mortgage approvals declined unexpectedly to the lowest level in more than a year in April as stamp duty holiday ended in March, data from the Bank of England revealed Monday. Elsewhere, data from the mortgage lender Nationwide Building Society showed that house prices rebounded unexpectedly in May suggesting momentum in underlying demand. Approvals for home loans rose to 60,463 in May.
RTTNews | 7天前
UK Vehicle Manufacturing Logs Weakest Start To Year Since 2009: SMMT

UK Vehicle Manufacturing Logs Weakest Start To Year Since 2009: SMMT

UK automotive manufacturing registered its weakest start to a year since 2009, the Society of Motor Manufacturers & Traders, or SMMT, said Thursday. Car and commercial vehicle production decreased 15.8 percent on a yearly basis to 59,203 units in April. Auto production fell to the lowest level for the month since 1952, excluding 2020 when the first Covid lockdown effectively saw manufacturing c
RTTNews | 11天前
UK Retail Sales Growth Tops Expectations On Warm Weather

UK Retail Sales Growth Tops Expectations On Warm Weather

UK retail sales rebounded more than expected in April as good weather boosted food store sales, official data showed on Friday. A monthly survey today showed that British consumer confidence strengthened in May on hopes of easing trade tensions and the interest rate reduction by the Bank of England. Retail sales grew 1.2 percent on a monthly basis in April, following a revised 0.1 percent rise
RTTNews | 17天前
UK Inflation Strongest Since Early 2024 On Household Bills, Employer Tax

UK Inflation Strongest Since Early 2024 On Household Bills, Employer Tax

UK consumer price inflation accelerated sharply to the highest level in more than a year in April due to higher domestic bills and the hike in employers' taxes, official data revealed on Wednesday. The consumer price index rose by a bigger-than-expected 3.5 percent year-on-year in April, which was faster than the 2.6 percent increase in March, the Office for National Statistics reported.
RTTNews | 19天前
UK Economy Expands Most In A Year

UK Economy Expands Most In A Year

The U.K. became the fastest growing economy in the G7 league as the country logged the biggest economic expansion in a year in the first quarter that exceeded expectations, thanks to a shift in trade activity ahead of the imposition of higher tariffs by the U.S. Gross domestic product expanded 0.7 percent sequentially, following a 0.1 percent growth in the previous quarter, the first estimate fr
RTTNews | 25天前