Investing.com – British house prices declined unexpectedly in September, industry data showed on Thursday.
In a report, the Halifax Bank of Scotland said its House Price Index fell by 3.6% in September, after rising by 0.4% in August, whose figure was revised up from 0.2%.
Economists expected the index to rise by 0.6% in September.
Commenting on the report, Halifax housing economist Martin Ellis said, “An increase in the number of properties available for sale in recent months has reduced the imbalance between supply and demand. At the same time, renewed uncertainty about the economy and jobs has caused consumer confidence to falter recently, dampening the demand for home purchase. Together, these factors have been exerting some downward pressure on prices in recent months”.
He added, “Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way and more people are putting their homes on the market. These will all be constraints on the market, dampening house prices".
Following the release of the data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.05% to hit 1.5882.
In a report, the Halifax Bank of Scotland said its House Price Index fell by 3.6% in September, after rising by 0.4% in August, whose figure was revised up from 0.2%.
Economists expected the index to rise by 0.6% in September.
Commenting on the report, Halifax housing economist Martin Ellis said, “An increase in the number of properties available for sale in recent months has reduced the imbalance between supply and demand. At the same time, renewed uncertainty about the economy and jobs has caused consumer confidence to falter recently, dampening the demand for home purchase. Together, these factors have been exerting some downward pressure on prices in recent months”.
He added, “Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way and more people are putting their homes on the market. These will all be constraints on the market, dampening house prices".
Following the release of the data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.05% to hit 1.5882.