The house price growth in the United Kingdom has slowly died down and taken a complete slow down as the economy continues to weaken. The figures for this month saw decreases from an annual growth rate perspective as the market cools down after the economic slowdown in the first half of the month. This has been the first time that the property market dips since May of this year.
According to the National Building Society, consumer budget is squeezed creating a great echo that encompasses that of the house-prices this August. The latest figures created worry as the economy continues to decline in the housing department, creating the weakest expansion this month amongst neighboring nations.
The annual data in the housing price fell to the 2.1% which matches May’s data and figures. This was the smallest figure they recorded since June of 2013; and in that year, they tallied a total of 0.1% price dip to a whopping 210,495 pounds or a total of$270,000. Reports also noted that the stocks of homes on estate agents’ book are closing to 30-years low.
In the most recent news, the month of July to August showed a decrease of a total of 0.1% falling to the 210,495 pounds according to Britain’s biggest building society, Nationwide. They also mentioned that March and May showed same figures that struggled, while the June and July figures fought out of the ruble and showed signs on increase and resistance.
According to Nationwide’s Robert Gardner, “The slowdown in house price growth to the 2-3 percent range in recent months from the 4-5 percent prevailing in 2016 is consistent with signs of cooling in the housing market and the wider economy,” and “Housing market activity will remain subdued."
The dip is expected to continue as consumers in the United Kingdom are generally squeezing their budget; this continues to put pressure on the housing market even with the positive employment rate and numbers. According to statistics, the unemployment rate dips on the lowest it has for over a whopping 40 years, while mortgage closes to all-time lows subsequently.
On the other hand, the Nationwide Society still projected a great and positive outlook for the house-price growth; they are expecting that it’ll grow by 2% all-in-all this year. They are pointing to the fact that the shortage of properties on the market will continue to prop up values.
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