LONDON (MNI) – UK house prices saw their second consecutive 0.2%
monthly fall in January, with prices up 0.3% in the three months through
January on the preceding three months.

The monthly fall was in line with analysts’ median forecast. The
data support the view UK house price inflation is evaporating, with
January prices up just 0.6% on a year ago, compared with up 1% in
December.

Recent house price asking surveys have shown some sharp monthly
falls, although the December Bank of England data showed mortgage
approvals, a good indicator of future housing market activity, rose to
their highest level for two years.

Robert Gardner, Nationwide’s Chief Economist, is expecting house
prices to drift sideways over coming months, with soft supply growth
meeting subdued demand growth.

“With the flow of properties coming onto the market still more of a
trickle than a flood, house prices are likely to continue to move
sideways or only modestly lower in the months ahead,” he said.

–London newsroom: 4420 7862 7491; email: drobinson@marketnews.com

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