U.K. House Prices Seen Flatlining in 2020 After Gain in December

(Bloomberg) --

U.K. house prices increased an annual 1.4% in December and are expected to be little changed in 2020, according to Nationwide Building Society.

Values rose just 0.1% from the previous month, the mortgage lender said Friday. Still, the gain from a year earlier was the strongest since November 2018.

Britain’s Brexit drama since 2016 has put a damper on the housing market, though Prime Minister Boris Johnson’s decisive election victory last month may start to remove some of the uncertainty. Low interest rates, high employment and a shortage of homes are keeping a floor under prices.

“Much will continue to depend on how quickly uncertainty about the U.K.’s future trading relationships lifts as well as the outlook for global growth,” said Robert Gardner, Nationwide’s chief economist. “We expect the economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat over the next twelve months.”

To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Brian Swint

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