x
Breaking News
0

UK house prices stabilize, but buyers still wary: Rightmove

Economic IndicatorsJul 16, 2017 07:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. An apartment block is constructed behind a row of traditional properties in central London

LONDON (Reuters) - Asking prices for houses and apartments in England and Wales stabilized after a drop in June, but home-buyers remain cautious as wage growth falls behind inflation, a survey by property website Rightmove showed on Monday.

The figures were based on property advertised between June 11 and July 8, covering the weeks after Prime Minister Theresa May unexpectedly lost her majority in parliament, creating uncertainty for investors who were already on edge about Britain's exit from the European Union.

Rightmove said average asking prices for property sold on its website increased by a monthly 0.1 percent in July, a month that usually sees slight falls in prices.

In annual terms, prices were up 2.8 percent compared with a 1.8 percent rise in June.

Other house price measures have shown a slowdown in growth this year, mirroring a weakening of the economy as consumers feel the pinch of rising inflation.

Rightmove director Miles Shipside said the market remained very price sensitive with some properties hitting a price ceiling. He also said that an eventual rise in mortgage costs would be a shock to buyers.

The Bank of England has is considering when to raise interest rates although most of its top officials have suggested now is not the time.

"Price rises are muted despite high housing demand, indicating we have left the stage of the cycle where price rises exceed the rate of inflation," Shipside said.

A jump in inflation to nearly 3 percent has hurt the spending power of many people in Britain, contributing to a slowdown in the economy and in house price rises.

Rightmove said asking prices in most of England fell, but the overall average inched up due to gains in London contrasting with a sharp fall in June in the capital.

Rightmove says more than 90 percent of British estate agents use its website to advertise property.

Separately, a survey showed British consumer confidence suffered its biggest fall in more than two years in the second quarter of 2017, mirroring other recent measures of consumer sentiment.

Accountancy firm Deloitte, which published the survey on Monday, linked the fall to the squeeze on living standards.

UK house prices stabilize, but buyers still wary: Rightmove
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email