–Nationwide: UK Mar House Prices Down 1.0% m/m; Down 0.9% y/y
–Sharp m/m Price Slide Pushes y/y Rate Into Negative Territory
–Nationwide Cites Stamp Duty Holiday Expiry For Slump In Prices
–Challenging Econ Likely To Be Drag On Prices Over Next Year
LONDON (MNI) – UK house prices plummeted by a full percentage point
in March, pushing the year-on-year change into negative territory for
the first time in six months.
Prices were down 0.9% from March 2011.
In February prices had risen by 0.4% on the month to leave
prices up 0.9% on the year, underlining the volatility of house price
surveys as well as the likely impact of the expiry of the government’s
stamp duty holiday.
Commenting on the figures, Robert Gardner, Nationwide’s Chief
Economist, said in a statement:
“A slowdown was to be expected, given the imminent expiry of the
stamp duty holiday, which had provided a temporary boost to house prices
in early 2012 as buyers brought forward purchases that would otherwise
have taken place later in the year.
“This dampening effect on housing market activity and prices may
fade over the course of the summer, especially if the wider economic
outlook begins to improve and other policy measures, such as the
Government’s NewBuy scheme are successful in supporting buyer demand.
“However, in our view the challenging economic backdrop is likely
to continue to act as a drag, with house prices moving sideways or
modestly lower over the next twelve months.”
–London newsroom: 4420 7862 7492; email: dthomas@marketnews.com
[TOPICS: M$B$$$,MABDS$]
