UK House Prices Rise 10% YoY in April

UK house prices rose by 10% over the last year, with a near-19% increase in London, according to official figures that intensified the debate about whether policymakers need to cool the market.

The Office for National Statistics said house price inflation in April – at 2% in a single month – was the highest for almost four years. Average UK house prices jumped 9.9% over the year to April with increases in all regions. Across England prices were up 10.4% while property values in the capital rose at their fastest pace for almost seven years, up by 18.7%.

The data came as the Bank of England’s financial policy committee (FPC) convened to discuss the biggest risks facing the UK financial system. House prices were expected to be top of the agenda, with committee members considering new powers handed to them last week by the chancellor, George Osborne, to curb house price rises. The committee will unveil any decisions in its financial stability report on 26 June.

City economists polled by Reuters say the most likely action to cool house prices from the FPC will be a cap on mortgages compared to a borrower’s income.

But some commentators say it may hold off as there are signs the market is already cooling.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza