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Housing prices slump causing worries over UK economy slowdown

This month house prices went down, negatively affecting the yearly growth, which could be another proof of a slowing market. Prices for housing slid 0.1% on average in July-August period to around £210,000, as Nationwide reports, the largest building society in Britain.

Prices grew in the first two months of summer, though dropped from March to May, the first such instance since the financial crisis. The last price fall brought down the annual growth from 2.9% in July to 2.1%, a figure last registered in May, which was the worst in the last four years.

Nationwide’s Robert Gardner stated that the deceleration in house price rise to 2-3% lately from mostly 4-5% in 2016 is in line with signals showing housing market cooling and the economy in general. He also said that overall growth in the first six months of 2017 had gone down twice as low as it had been in the last year to around 0.3% in a quarter, and that the amount of mortgages greenlighted for buying a house reached a nine-month bottom in June, and data shows that new inquiries had also decreased.

To an extent the housing market cooling was unexpected, taking into account lively labour market, though mortgage rates are near the worst ever, he added.

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