LONDON: British house prices fell in March for the first time since mid-2015, mortgage lender Nationwide said on Friday, another sign that households are turning more cautious as the country prepares to leave the European Union.
Nationwide said house prices declined by a monthly 0.3 per cent, compared with a rise of 0.6 per cent in February.
In annual terms, prices were 3.5 per cent higher, the weakest increase since August 2015. Economists polled by Reuters had expected house prices to rise by 0.4 per cent in March from February and annual growth of 4.1 per cent. A separate Reuters poll published in February forecast that house price growth would slow sharply to 2.5 per cent this year and remain subdued in 2018 and 2019 as the country leaves the EU.
British Prime Minister Theresa May launched the two-year process of leaving the EU on Wednesday. The fall in sterling since the June referendum is pushing up inflation and wage growth remains sluggish, reducing the spending power of households. — Reuters
Oman Observer is now on the WhatsApp channel. Click here
