(Bloomberg) -- House prices in London continued to drop this month, though the downturn is showing some signs of leveling off, according to Rightmove.
Asking prices in the capital fell 0.4% in June, the property-website operator said in a report Monday. That left the annual drop at 2%, the slowest pace of declines since January.
The report is the first in a run of economic data due this week before Bank of England policy makers announce an interest-rate decision on Thursday. Officials are expected to vote to keep policy unchanged, although they may try to use to the minutes of the meeting to shift market expectations -- which are currently at odds with their outlook.
The Rightmove data add to signs that the housing market -- which has struggled in recent years due to political uncertainty and affordability issues -- has gained some temporary relief from the delay to Brexit. Nationally, prices rose 0.3% in June, pushing the average home value close to a new record.
Still, there remain signs of caution in the market, with new seller supply down by an average of 5% versus the same period in 2018.
In a separate report Monday, the British Chambers of Commerce unveiled a downbeat outlook in its latest economic forecast, predicting growth of 1.3% this year, 1% in 2020 and 1.2% in 2021. The scenario assumes the U.K. avoids a chaotic exit from the European Union.
