Britain’s housing market stabilized in January, breaking four months of decline, one of the biggest mortgage lenders said.
(Bloomberg) — Britain’s housing market stabilized in January, breaking four months of decline, one of the biggest mortgage lenders said.
Halifax said its measure of property prices was unchanged last month after an 1.3% drop in January. It said the annual pace of growth slowed to 1.9% from 2.1%.
The figures indicated more strength than rival lender Nationwide Building Society, which recorded the longest string of declines since 2008 in its widely-watched figures. The two lenders calculate house prices based on the mortgages they write for homebuyers. Both expect the market to weaken this year along with the economy and consumer spending power.
“We expected that the squeeze on household incomes from the rising cost of living and higher interest rates would lead to a slower housing market, particularly compared to the rapid growth of recent years,” said Kim Kinnaird, director of Halifax mortgages. “As we move through 2023, that trend is likely to continue as higher borrowing costs lead to reduced demand.”
Halifax said this month’s figures represent the weakest in three years, since the pandemic brought the property market to a standstill. The rate of growth slowed across all regions.
Read more:
- UK House Prices in Longest Slump Since 2008, Nationwide Says
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