UK house price climb slows, homes shortage deepens

Spread the love

© Reuters. Property estate agent sales and letting signs are seen attached to railings outside an apartment building in south London, Britain, September 23, 2021. REUTERS/Hannah McKay/Files

LONDON (Reuters) – British house price growth slowed slightly last month as a tax break on property purchases neared expiry, but a fall in the number of homes being put up for sale looks set to keep pushing up prices, an industry survey showed on Thursday.

The Royal Institution of Chartered Surveyors said its house price balance fell to +68 in September from a downwardly revised +72 in August, matching economists’ forecasts in a Reuters poll.

Britain’s housing market, like those in many other big economies, has boomed over the past year as the COVID-19 pandemic led to increased demand for properties with more space.

British house prices got an extra boost from a tax break on property purchases which expired at the start of this month.

Mortgage lender Halifax reported last week that prices in September were 7.4% up on the year, including a hefty 1.7% monthly jump, the largest since 2007.

RICS said its members thought prices rises would slow over the next few months. But there was an unusually broad consensus that prices and rents would rise further over the year to come, as fewer homes and rental properties come on to the market.

“Both price and rent expectations (are) close to series highs pointing to greater pressure on affordability at a time when money markets are sensing interest rate increases coming sooner rather than later,” RICS’s chief economist, Simon Rubinsohn, said.

Investors expect the Bank of England to start raising its main interest rate from a record-low 0.1% before the end of the year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Registered For FREE Forex Training!

Fill In Your Details To Get Registered For FREE Forex Training!