LONDON: UK house prices fell for a second month in a row in April in a sign that the squeeze on family incomes is starting to weigh on the property market.
The average price of a home fell by 0.4% over the month to £207,699, following a 0.3% drop in March, according to Nationwide. It was the first time that prices fell in two consecutive months in nearly five years and drove down the annual rate of house price growth to 2.6%, the weakest since June 2013. Robert Gardner, Nationwide’s chief economist, said the slowdown could reflect the broader backdrop for consumer finances, which are coming under increasing pressure from a combination of rising inflation and weak wage growth. “While monthly figures can be volatile, the recent softening in price growth may be a further indication that households are starting to react to the emerging squeeze on real incomes or to affordability pressures in key parts of the country,” Gardner said. He said the outlook for the property market over the coming months was particularly difficult to predict because of the upcoming general election and uncertainty surrounding the outcome of Brexit negotiations.
