- Robert Gardner, chief economist at Nationwide
UK house prices climbed at a slower than expected pace in January after a decline in mortgage approvals in the prior month, the mortgage lender Nationwide reported. House price growth slowed to 0.3% on month in January from December's eight-month high of 0.8%. As a result, a year-on-year growth declined to 4.4%. According to the British Bankers' Association, mortgage approvals for house purchase plunged in December to the lowest level in seven months of 43,975. The average price of a property is now 196,829 pounds, slightly down on December. According to the Halifax house price index, prices rose 1.7% between November and December, pushing the annual price change up by 9.5%. At the same time, a less volatile quarterly gauge of price growth showed an advance of 1.6%.
Despite cooling at the beginning of the year, house price growth in the UK remains strong by historical standards. British house prices are expected to continue to rise in 2016 amid lag in construction. According to the National Association of Estate Agents, an average of 374 buyers were registered with each agent, down from 403 in November, but higher than the 360 potential buyers recorded in 2014 and the 302 in December 2005.
© Dukascopy Bank SA