FILE PHOTO: Property agent’s indicators hold from homes within the Selly Oak space of Birmingham, Britain September 25, 2018. REUTERS/Darren Staples
LONDON (Reuters) – British home costs rose by simply 0.1 p.c in annual phrases in January, their weakest improve in practically six years, including to indicators of a slowdown within the nation’s housing market forward of Brexit, information from mortgage lender Nationwide confirmed.
Nationwide mentioned the housing market’s lack of momentum mirrored the unusually “unsure financial outlook” but when the economic system grew modestly, home costs on a nationwide stage would most likely develop “at a sluggish single-digit tempo” this yr.
In month-to-month phrases, costs rose by 0.three p.c.
Britain is because of go away the European Union on March 29 however Prime Minister Theresa Could, below stress from her personal Conservative Get together, says she needs to vary a key a part of the withdrawal settlement she struck with the remainder of the bloc.
That has raised the prospect of an economically damaging no-deal Brexit.
Britain’s housing market has slowed because the Brexit referendum in June 2016 when Nationwide estimated home costs had been rising by round 5 p.c a yr.
Surveys revealed earlier on Thursday confirmed British customers remained their gloomiest in five-and-a-half years and companies had been additionally downbeat.
Economists who took half in a Reuters ballot of economists forward of Nationwide’s information had anticipated costs to be flat when put next with January final yr and to rise by 0.2 p.c in month-to-month phrases.
Writing by William Schomberg; Enhancing by Raissa Kasolowsky