Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

UK house prices fall by most since 2009, higher rates to bite-Nationwide

2023 06 01T075122Z 1 LYNXMPEJ5018F RTROPTP 4 BRITAIN ECONOMY HOUSEPRICES - Global Banking | Finance

UK house prices fall by most since 2009, higher rates to bite-Nationwide

LONDON (Reuters) -British house prices fell by the most since 2009 in the 12 months to May and the country’s housing market faces further headwinds after a recent jump in borrowing costs, mortgage lender Nationwide said on Thursday.

Compared with May last year, the average house price was down 3.4% after a 2.7% annual fall in April, Nationwide said.

That was the biggest year-on-year drop since 2009, during the global financial crisis.

House prices edged down by 0.1% in May from April after a monthly 0.4% rise in April, Nationwide said.

The housing market showed signs of recovery in early 2023 after a jump in mortgage rates at the end of last year triggered by former Prime Minister Liz Truss’s “mini-budget” plans for tax cuts which sent financial markets into turmoil.

However, stronger-than-expected inflation figures published last week caused a fresh rise in bond yields as investors priced in further Bank of England interest rate increases, prompting some lenders to rein in or reprice mortgage offers.

“Headwinds to the housing market look set to strengthen in the near term,” Robert Gardner, Nationwide’s chief economist, said, citing the risk that the jump in borrowing costs and mortgage rates could be sustained.

“Nevertheless, in our view a relatively soft landing remains the most likely outcome since labour market conditions remain solid and household balance sheets appear in relatively good shape,” Gardner said.

Martin Beck, an economist with the EY Item Club, a forecasting group, said the 4% fall in house prices from last August’s peak was modest compared with the 7% rise in house prices over the past two years.

But 2.5 million owner-occupiers have yet to see their fixed-rate deals go up over the remainder of 2023 and the BoE is likely to carry on raising borrowing costs, meaning house prices would drift down further, Beck said.

Analysts at Capital Economics said prices would fall another 8% while Pantheon Macroeconomics said they would drop 4%.

(Reporting by William SchombergEditing by Muvija M, Paul Sandle and Christina Fincher)

Global Banking & Finance Review


Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post