UK House Prices Shows Signs of Slowdown

The pace of house price growth in the U.K. may finally be slowing, amid concerns about interest rates rising sooner than expected.

Home-owner sentiment about what will happen to the value of their house fell in June for the first time in six months, according to the Knight Frank/Markit House Price Sentiment Index, which often foreshadows where house prices are headed.

This may increase hopes of a soft landing for the property market. There have been fears in recent months of a bubble building, particularly in London.

House price in the U.K. were 9.9 percent higher in April compared with the same month 2013, but in London, they leapt by 18.7 percent over the year, according to data from Britain’s Office for National Statistics.

In the capital – the driving force behind house price growth – expectations for future price rises were at their lowest level since December 2013, according to the index.

via CNBC

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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