Uncertainty remains for the UK housing market.
House prices in the UK rose by 4.3 percent year-on-year in January, marking its slowest annual rate in over a year and the weakest since November 2015, reported The Guardian, citing mortgage lender Nationwide.
On a monthly basis, average home prices in the UK climbed by 0.2 percent to £205,240 (S$367,406), down from the 0.8 percent increase posted in December.
Robert Gardner, Chief Economist at Nationwide, said there are early signs that the housing market will soften this year, as household budgets are squeezed by higher consumer inflation at a time of weaker wage and jobs growth.
He noted that while the housing market outlook remains clouded, reflecting the uncertainty surrounding economic prospects more broadly, there are still grounds for optimism.
“The economy has remained far stronger than expected in the wake of the Brexit vote. However, there are tentative signs that conditions may be about to soften,” said Gardner.
“The economy is likely to slow through 2017 as the squeeze on household budgets intensifies and heightened uncertainty weighs on business investment and hiring.”
Nationwide expects house prices in the UK to grow by two percent in 2017, down from 4.5 percent in 2016.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
