LONDON (Reuters) – UK house prices fell more-than-expected 0.6% in January and are now 3.2% below their August peak amid surging borrowing costs and broader inflationary pressures, mortgage lender Nationwide Building said. Society said on Wednesday.
Home prices fell for the fourth straight month in January and were twice as much as expected in a Reuters poll of economists, adding to a sign that the market is slowing sharply.
Interest rates have risen sharply since December2021 and the mortgage market has struggled following former prime minister Liz Truss’ ‘mini-budget’ There were major disruptions in late September and October, with market rates surging.
“There are some encouraging signs that mortgage rates are normalizing, but it is too early to tell whether activity in the housing market has begun to recover,” said Nationwide chief economist Robert J. Gardner (Robert Gardner) said.
“The market will struggle to regain much momentum, real incomes are likely to fall further as economic headwinds will remain strong, and as the economy contracts, he added , a weakening labor market is widely expected, and therefore home prices in the near term to change.
January rose 1.1% from a year earlier, down from December’s 2.8% gain and a Reuters poll of economic Economists expected a 1.9% increase.
