You are here: Home - Mortgages - Buy To Let - News -

UK house prices continue to soften but growth still positive

0
Written by: Victoria Hartley
01/03/2018
House price growth fell back 0.3% in February after a strong start to the year, as consumer confidence and the squeeze on household incomes continues to take its toll, according to Nationwide.

However, annual property value growth is still positive at +2.2% despite a fall from 3.2% the previous month.

Robert Gardner, Nationwide’s chief economist, said: “Retail sales were relatively soft over the Christmas period and at the start of the new year, as were key measures of consumer confidence, as the squeeze on household incomes continued to take its toll.

“Similarly, mortgage approvals declined to their weakest level for three years in December, at just 61,000. Activity around the year end can often be volatile, but the weak reading comes off the back of subdued activity in October and November.”

Gardner said the strength of the housing market this year will be determined by the wider economy and the path of interest rates.

“Brexit developments will remain a key factor, though these remain hard to foresee. We continue to expect the UK economy to grow at a modest pace, with annual growth of 1% to 1.5% in 2018 and 2019. Subdued economic activity and the ongoing squeeze on household budgets is likely to exert a modest drag on housing market activity and house price growth,” he added.

Richard Sexton, director, e.surv said limited housing supply continues to act as a bottleneck, squeezing potential buyers out.

“Saving for a deposit is one of the biggest challenges would-be homeowners face, particularly for those in the capital.

“Our most recent Mortgage Monitor showed that only 17% of loan approvals went to borrowers with small deposits in London.

“Although we have seen a commitment from the government to address our housing crisis with an exemption of Stamp Duty for first-time buyers, only time will tell if this has been enough to fully support them.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2262116-broadband-internet
Firms forced to be clearer on broadband speeds

Internet providers will need to give a minimum guaranteed speed to potential customers before they sign up to a deal,...

Close