UK house prices fall for a second month
U.K. house prices fell for a second month in April, according to the Nationwide Building Society, as reported by BloombergL.P. ©2017
According to the Nationwide Building Society this drop in house prices may be part of a wider trend showing weakness in consumer demand. The 0.4 percent decline, the biggest since 2012, followed a 0.3 percent fall in March. It reduced annual growth to 2.6 percent, the weakest since June 2013.
Nationwide chief economist Robert Gardner said the softening in house-price growth may be a sign households are “starting to react to the emerging squeeze on real incomes or to affordability pressures in key parts of the country.”
With house-price growth outstripping wage increases, that’s making it harder for newbuyers to enter the market. On top of that, a pickup in consumer-price inflation is further hitting pockets, which may be adding to the pressure on demand.
Nationwide said the typical home now costs 6.1 times average earnings. That’s above the long-term average of 4.3 and close to the record 6.4 recorded in 2007, just before the financial crisis.
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