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UK annual house price growth rate slowing, Halifax index shows; oil pushes higher – business live | Business


Instant Info – Halifax UK House Price Index pic.twitter.com/HZUK9Jnrwe

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UK house prices Photographer: Halifax

House prices climbed £92 a day in May, according to the Halifax. (average prices climbed £2,857 in the month)

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House prices climbed £92 a day in May, according to the Halifax. (average prices climbed £2,857 in the month)

— simon read (@simonnread) June 8, 2022

Halifax says that Northern Ireland topped the table again this month for annual house price inflation, seeing prices rise by 15.2% to an average of £185,386.

The South West of England also recorded a strong rate of annual growth at 14.5%, with an average property cost of £305,173, alongside Wales at 13.7%, where a home is a now a record of £216,120.

Overall, nine regions of the UK registered double-digit annual inflation, with only Yorkshire and the Humber, Scotland and London in single figures. Nonetheless, buying a home in the capital today would still require £541,942, on average.

In Scotland, price growth is lower than the UK average, with annual inflation at 8.3%. A home there now costs an average £198,288.

Introduction: UK annual house price growth slows – Halifax

Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.

There are signs that the UK housing market is cooling, with annual price rises easing to 10.5%, the slowest pace since January, when it was 9.7%.

Even so, house prices rose for an 11th month and hit a new record high in May, according to the latest data from Halifax, which is part of Lloyds Banking Group, the country’s biggest mortgage lender.

The average price of a house rose by 1%, or £2,857, between April and May to £289,099. Halifax found that house prices have risen 74% in the last 10 years, led by London.

Russell Galley, managing director at Halifax, said:

Despite the very real cost of living pressures some people are experiencing, the imbalance between supply and demand for properties remains the primary reason driving the continued climb in house prices.

For house hunters, the extent of the impact of property price inflation continues to be linked to the type of home they are looking to buy. Compared to May last year, you’d need around £10,000 more to buy a flat, but an additional £50,000 for a detached home. This clearly creates a knock-on effect for those looking to make their first home move, as the rungs on the housing ladder have become increasingly wider.

However, the housing market has begun to show signs of cooling. Mortgage activity has started to come down and, coupled with the inflationary pressures currently exerted on household budgets, it’s likely activity will start to slow.

So, there is perhaps one green shoot for prospective purchasers; with overall buying demand down compared to last year, we may be past the peak sellers’ market.

Over the past decade, the cost of a home has risen by 74%, or £123,016. The strongest inflation has been in London (84.2%), followed by the East of England (84.0%) and the East Midlands (82.1%). In cash terms, London house-hunters need £247,638 more than those looking ten years ago, whereas those in the East of England need £153,930 and the East Midlands £108,116.

On the markets, crude oil prices are pushing higher ahead of inventory data from the US this afternoon. Brent crude, the global benchmark has gained 40 cents, or 0.3%, to $120.95 a barrel, while US light crude is trading at $120 a barrel, up 0.5%.

In Germany, industrial production rose 0.7% in April from Marchand fell by 2.2% on the same month last year, according to provisional data from the Federal Statistical Office.

This marks an improvement from March, when output dropped by 3.7% on the month, but April’s gain fell short of the 1% forecast by economists. Also, worryingly, factory orders in the European powerhouse fell for a third month in April, we learned yesterday.

In Japan, the economic picture is a bit better than thought. Japan’s economy shrank slightly less than initially reported in the first quarter, as private consumption remained resilient. Revised data released by the Cabinet office showed GDP fell by an annualized rate of 0.5% between January and March, and dipped by 0.1% on the quarter.

Agenda

  • 7.45am BST: France trade for April
  • 9am BST: Italy retail sales for April
  • 9.30am BST: UK S&P Global/CIPS Construction PMI for May
  • 10am BST: GDP third estimate for first quarter (forecast: 0.3%)




www.theguardian.com

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