Investing.com – U.K. house prices declined more-than-expected in January, down for the second consecutive month, industry data showed on Wednesday.
In a report, U.K. mortgage lender Nationwide said its house price index fell 0.2% in January, disappointing expectations for a modest 0.1% decline.
U.K. house prices fell by an unrevised 0.2% in December.
Year-on-year, home prices in the U.K. rose at an annualized rate of 0.6% in January, below expectations for a 1.2% increase, after rising by 1.0% in the preceding month.
Commenting on the report, Nationwide's chief economist Robert Gardner said, “Given the challenging conditions prevailing in late 2011, with the UK economy contracting in the final three months of the year, it’s not surprising that house price growth softened at the start of 2012.”
“The economy is not expected to gather much momentum until the second half of 2012 at the earliest, which suggests that labor market conditions and buyer sentiment may be slow to improve,” Mr. Gardner added.
Following the release of the data, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.21% to trade at 1.5725.
Meanwhile, the outlook for European stock markets was modestly upbeat. The EURO STOXX 50 futures pointed to a gain of 0.3%, France’s CAC 40 futures added 0.4%, London’s FTSE 100 futures edged 0.1% higher, while Germany's DAX futures rose 0.15%.
In a report, U.K. mortgage lender Nationwide said its house price index fell 0.2% in January, disappointing expectations for a modest 0.1% decline.
U.K. house prices fell by an unrevised 0.2% in December.
Year-on-year, home prices in the U.K. rose at an annualized rate of 0.6% in January, below expectations for a 1.2% increase, after rising by 1.0% in the preceding month.
Commenting on the report, Nationwide's chief economist Robert Gardner said, “Given the challenging conditions prevailing in late 2011, with the UK economy contracting in the final three months of the year, it’s not surprising that house price growth softened at the start of 2012.”
“The economy is not expected to gather much momentum until the second half of 2012 at the earliest, which suggests that labor market conditions and buyer sentiment may be slow to improve,” Mr. Gardner added.
Following the release of the data, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.21% to trade at 1.5725.
Meanwhile, the outlook for European stock markets was modestly upbeat. The EURO STOXX 50 futures pointed to a gain of 0.3%, France’s CAC 40 futures added 0.4%, London’s FTSE 100 futures edged 0.1% higher, while Germany's DAX futures rose 0.15%.