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Chickens come home to roost. UK House prices falling sharply in December

GBPUSD News by Allie Longford on 08:06 January 08, 2018 EST

Macro factors, Brexit and the UK government war on the private rental sector start to take a toll on UK house prices.

Halifax, one of the largest mortgage lenders in the UK, released on Monday its latest house price report that shows sliding prices last month. Its house price index saw the cost of an average UK residential property dropping 0.6% in December, the first monthly decline since June.

For the year price growth was of 2.7% in 2017 similar to the Nationwide’s estimates of 2.6%. Indeed, the building society said the market is rising at barely half the pace of 2016, with London prices falling for the first time in eight years.

Halifax forecasts another sluggish performance for this year, with growth of between 0% and 3%.

The Bank of England’s November rate rise pushing up the cost of mortgages, a change in the tax regime for private rentals and Brexit are finally denting the strength of this sector despite the sinking pound.