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Home prices in UK decline, as London shows biggest fall

Britain’s home prices declined in March for the second straight month, as London became the region with worst dynamics, shows data by Nationwide. Last month an average home cost £211,625, 0.2% fall compared to the preceding month.

This month the yearly growth rate went down to 2.1% giving up 0.1%, the minimal joint rate since the middle of 2013. Family incomes are still under pressure, regardless of a slight rise in wage growth, said Nationwide’s Robert Gardner.

Lower consumer confidence derives from the squeeze on household budgets due to wage growth being unable to catch up with moving up living costs, he also said.

The leader in the yearly rise of home prices is Northern Ireland – 7.9%, but prices in the region are still the lowest in relation to the figures before crisis – 38% less than in 2007, given that average UK prices are 16% higher.

For a whole year northern parts of England showed faster yearly home price growth than the southern ones, with the slowest rise since 2012. London’s prices decreased by 1% from a year ago.

So the gap between the north and the south has narrowed a bit, but the difference in prices is still huge, with a price of an average house in the north equaling £163,138, compared to a southern average of £331,047.

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