UK Housing Slowing Down

The perceived value of homes in the U.K. rose at the slowest rate in five months in August, in what may be the latest sign house price growth in the country is finally starting to subside.
This was the third month in a row where households’ expectations of house price rises fell, according to estate agent Knight Frank and data company Markit.

These figures “suggest that the price exuberance seen in some corners of the market is easing,” Gráinne Gilmore, head of U.K. residential research at Knight Frank, said in a statement.

They also point to increasing nervousness about possible interest rate rises by the Bank of England amongst U.K. households.
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London house prices have risen particularly sharply this year, with a 20 percent rise in the year to June, according to official figures.

The volume of house sales is also likely to continue its decline, with 5.9 percent of UK households planning to buy a property in the next year, down from 6.7 percent in July. This may partly be due to tighter new rules on mortgage lending, as well as perceived inflation in house prices.

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