British housing prices are declining in January 2018 for the first time in nearly six years. The prices dropped by 0.4% yoy in January, according to a new report released by Acadata. The detailed data, which also covers the fourth quarter of 2017, shows that London leads in the negative rating with a fall in prices of 4.3%, which is the largest since 2009.
“This is the eighth consecutive month in which the annual growth rate is slowing, and now also in the red zone”, said the Chairman of Acadata, Peter Williams.
Despite the government’s efforts to help first home buyers, the mortgage approvals have fallen to their lowest level in December in nearly three years, and there are doubts about the strength of demand.
There may be additional pressures on the market in the future, as some analysts expect the Central Bank of England to raise interest rates twice this year. The central bank raised interest rates in November – for the first time in a decade.
On a monthly basis, the British housing prices in January rose by 0.2%. They are on green territory on month-on-month basis for the first time since September. Thus, the average house price in the country has reached 301,477 GBP (416,000 USD). In London the average price is 589,553 GBP.