U.K. House-Price Stagnation Is Sign of Resilience, Halifax Says
U.K. house prices fell in June as Brexit uncertainty leaves the market in limbo, though there are some signs of optimism.
Prices dipped 0.3% to an average 237,110 pounds ($298,118) from a month earlier, mortgage lender Halifax said. Economists predicted a fall of 0.4%. From a year ago, values increased 5.7% in the the three months through June, against a backdrop of low growth in the same period of last year.
Demand for housing stabilized in May, with agreed sales falling for a 10th consecutive month, but less steeply. Sentiment on the longer-term outlook for sales and prices showed a modest recovery, the report said. The property market has been suffering from political turmoil over the U.K.’s departure from the European Union, but a shortage of homes, record employment and low borrowing costs are all putting a floor under values.
“The housing market is displaying a reasonable degree of resilience in the face of political and economic uncertainty,” said Russell Galley, managing director at Halifax. “With the ongoing lack of clarity around Brexit, people will be looking for more certainty in the coming months, both to encourage them to list their property and to create the confidence needed to encourage buyers.”
©2019 Bloomberg L.P.