U.K. House-Price Gain Doesn't Lift Nationwide's Property Caution

(Bloomberg) -- U.K. house prices rose for the first time in three months in April, though the gain wasn’t enough to shift Nationwide’s broad view of the market.

The lender said values based on its index rose 0.2 percent on the month. From a year earlier, they were up 2.6 percent, an improvement from the 2.1 percent increase recorded in March.

But annual price growth is only about half the pace of two years ago, and Nationwide Chief Economist Robert Gardner said that slowdown is set to continue. He sees a gain of only about 1 percent in 2018.

While Brexit uncertainty is weighing on the market, U.K. workers are also only just seeing real incomes start to rise again after a yearlong squeeze from faster inflation. GfK said on Friday that U.K. household sentiment fell in April, adding that it’s going to take more good news to lift consumer spirits.

To contact the reporter on this story: Fergal O'Brien in London at fobrien@bloomberg.net.

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Brian Swint, Zoe Schneeweiss

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