UK Houses Rise in May

UK house prices rose for the first time in five months in May as buyers were spurred on by a shortage of homes and low mortgage rates.

The average price increased by 0.4% last month to £220,706, according to Halifax. It was the first monthly rise in house prices since the beginning of 2017 and surprised City economists, who had forecast a 0.1% fall.

House prices went up in May despite uncertainty surrounding the upcoming Brexit negotiations and general election, and a tougher outlook for household finances, which are being squeezed as inflation outpaces wage growth.

Martin Ellis, a housing economist at Halifax, said Britain’s property shortage was a key factor underpinning prices.

“The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, is likely to support house price levels over the coming months,” he said.

However, the longer-term trend was weaker, with the annual growth rate in house prices the slowest in four years at 3.3%, and sharply lower than the recent peak of 10% in March 2016. Prices fell by 0.2% over the past three months.

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