British house prices fell in February by the smallest amount in eight months, declining by 0.2 percent on an annual basis. This was a smaller decrease than the revised 1.3 percent drop seen in January, according to data from the Office for National Statistics (ONS).
The ONS also reported that its gauge of private rents rose by 9.2 percent in the year to March. This represented the largest increase since records began in 2015, up from 9.0 percent in the 12 months to February.
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Average UK house prices decreased by 0.2% in the 12 months to February 2024, to £281,000 (provisional estimate)🏡
This is up from a decrease of 1.3% (revised estimate) in the 12 months to January 2024.
➡️ https://t.co/MlsvSXmpa4 pic.twitter.com/g8fhPD2Kwe
— Office for National Statistics (ONS) (@ONS) April 17, 2024
Other measures have indicated a recovery in the U.K. housing market from a recent slowdown, as investors anticipated interest rate cuts by the Bank of England (BoE) later this year. Mortgage lender Halifax said property prices fell for the first time in six months in March, while rival Nationwide reported prices rose that month at the fastest annual pace since December 2022.
However, a slower than expected slowdown in British inflation, as shown in data published on Wednesday, prompted investors to scale back their expectations of BoE interest rate cuts. A first and potentially only cut in the Bank Rate is now fully priced in for November.
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