Financial News: UK House Prices Unexpectedly Fall

UK House Prices Unexpectedly Fall

05/01/2024 - 03:07:00 (RTTNews)

(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. <a href=https://www.rttnews.com/3443177/uk-mortgage-approvals-at-18-month-high.aspx?refresh=1 target=_blank >Mortgage approvals</a> rose to an 18-month high of 61,300 in March.

Over the last five consecutive meetings, the <a href=https://www.rttnews.com/3433978/bank-of-england-keeps-rate-on-hold-for-fifth-time.aspx target=_blank >Bank of England</a> has kept its interest rate unchanged at 5.25 percent, the highest level since early 2008.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

South African Leading Index Falls In March (01 hr(s), 45 min(s), 09 sec(s) ago)
(RTTNews) - South Africa's composite leading index decreased in March to the lowest level in s ...Full Story»

Eurozone Current Account Surplus Rises In March (02 hr(s), 02 min(s), 09 sec(s) ago)
(RTTNews) - The euro area current account surplus increased in March on improving primary income, ...Full Story»

Denmark Economy Contracts Most In Almost 4 Years (02 hr(s), 35 min(s), 09 sec(s) ago)
(RTTNews) - The Danish economy contracted at the steepest pace in nearly four years in the first q ...Full Story»

South Korea Consumer Confidence Weakens In May (03 hr(s), 43 min(s), 09 sec(s) ago)
(RTTNews) - South Korea's consumer sentiment decreased in May to the lowest level in six month ...Full Story»

Germany Producer Prices Continue To Fall (04 hr(s), 09 min(s), 09 sec(s) ago)
(RTTNews) - Germany's producer prices continued to fall in April on lower energy and intermedi ...Full Story»

European Economic News Preview: Eurozone Foreign Trade Data Due (04 hr(s), 35 min(s), 09 sec(s) ago)
(RTTNews) - Foreign trade and current account reports from the euro area are the top economic news ...Full Story»

RBA Minutes On Tap For Tuesday (34 min(s), 51 sec(s) ago)
(RTTNews) - The Reserve Bank of Australia will on Tuesday release the minutes from its May 7 monet ...Full Story»

BoE's Broadbent Says Rate Cut Possible Some Time Over Summer (48 min(s), 51 sec(s) ago)
(RTTNews) - Bank of England's Deputy Governor Ben Broadbent said the interest rate could be cu ...Full Story»