Property News · March 7, 2017

UK house prices were rising too fast – bring on the slowdown | Nils Pratley


News that the market is cooling may not please homeowners looking to sell, but we were heading towards dangerous watersEncouraging news from the housing market: cooler winds are blowing. The rate of growth in prices fell in February to the lowest for three-and-a-half years, according to the Halifax’s index. This development may not delight homeowners looking to sell in a hurry but, for anybody with a wider or longer perspective, a slowdown is exactly what the UK needs.Annual house price inflation a year ago had reached the silly level of 10%, far too fast for an economy growing at about 2%. A correction was overdue and the steady decline to 5.1%, down from 5.7% in January, restores a degree of sanity. A rate of 5% is still too high given that average earnings are currently growing at 2.5%, but most economists think house price inflation should slow to 2% by the end of this year. Bring it on. Continue reading…

Source : theguardian.com
Read more…UK house prices were rising too fast – bring on the slowdown | Nils Pratley

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