UK House Prices Fall in London But Rise in Rest of Nation

The UK housing market divided sharply last month with London the only region where surveyors reported falling prices.

As a fall in the number of houses coming on to the market pushed prices up across the rest of the country, the capital experienced declines for the sixth month in a row, according to the Royal Institution of Chartered Surveyors (RICS).

However, RICS suggested the falls would be temporary with surveyors expecting London prices to increase by 30% in the next five years.

The RICS monthly snapshot showed 8% more surveyors reported declines in new supply than had seen rises in February. New instructions have now fallen in six out of the last seven months.

While Northern Ireland and Scotland continue to outperform the rest of the UK, price growth picked up across the south west and the south-east.

Nationwide, price expectations for the next three months increased from a net balance of 3% to 10% expecting rises.

Despite some evidence suggesting that political uncertainty surrounding the May election could be holding back potential sellers, surveyors are now predicting nationwide house price growth of 2.4% over the next 12 months, up from 1.8% in January.

Notable exceptions to this trend are London, the north of England and the east Midlands, suggesting that political uncertainty may be weighing more heavily on certain areas.

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