UK House Price, More Falls to Come

UK house prices fell by 1.1% in the year to February, as inflation and higher mortgage rates hit prospective buyers.

Across the UK, the average house price was £257,406 in February, Nationwide Building Society said.

It is the weakest rate since November 2012. In January, the annual rate showed 1.1% growth.

Prices fell 0.5% compared with January, following a 0.6% drop the month before. It was the sixth monthly decline in a row, and left prices 3.7% below their £273,751 peak in August.

February’s negative annual price growth of 1.1% was the weakest seen since November 2012, Nationwide added.

Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth slipped into negative territory for the first time since June 2020, with prices down 1.1% in February compared with the same month last year.

House prices will go down further. And it is true that this downturn will not last forever as well.
But just focusing on some housing markets of advanced countries, I think the real housing supply is enough to satisfy the real demand. Only the housing demand in investment view seems to run away. And the private investors who leveraged a lot to buy houses may have big concerns. And it is estimated that construction companies and relevant funds may face critical points.

Source: Yahoo Finance