Real Estate

UK house price growth sinks to six-year low


House price growth in the UK slowed to its weakest pace in almost six years in December, in the latest sign of a cooling property market in the country.

House prices in December were just 0.5 per cent higher than they had been one year previously — the smallest annual increase since February 2013 — as an uncertain economic outlook continued to weigh on buyer sentiment, the latest Nationwide House Price Index revealed on Thursday.

“This marks a noticeable slowdown from previous months, where prices had been rising at a [roughly] 2 per cent pace. However, it is broadly in line with our expectations,” said Robert Gardner, chief economist at Nationwide.

“In particular, measures of consumer confidence weakened in December and surveyors reported a further fall in new buyer inquiries towards the end of the year, he added.

“While the number of properties coming onto the market also slowed, this doesn’t appear to have been enough to prevent a modest shift in the balance of demand and supply in favour of buyers.”

Prices fell 0.7 per cent in December compared with the November, after seasonal factors were accounted for.

Mr Gardner said he expected house prices to grow at a “low single-digit pace” this year, provided economic growth continues at a “modest pace” and the unemployment rate and cost of borrowing remain close to current levels.



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