LONDON: House prices in Britain rose a bit more quickly this month after touching a seven-month low in March but they are still expected to slow this year, reflecting weak economic growth and possibly higher interest rates, mortgage lender Nationwide said. House prices rose 2.6 per cent in the year to April compared with a rise of 2.1 per cent in March and in line with the median forecast in a Reuters poll of economists.
Prices rose 0.2 per cent on the month after a drop of 0.2 per cent in March, also matching the median forecast in the poll.
House prices are rising much more slowly than before the 2016 referendum decision to take Britain out of the European Union, which hit consumer confidence and spending as the pound’s fall pushed up inflation.
Nationwide’s measure of house prices was growing by about 5 per cent a year around the time of the Brexit vote and the lender said on Friday it continued to expect house price growth of just 1 per cent in 2018. “Looking ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates,” Robert Gardner, Nationwide’s chief economist, said.— Reuters
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