Azernews.Az

By Bloomberg

U.K. house-price growth slowed to its weakest in more than a year in December, adding to evidence that the market for residential property is cooling.

The annual gain in value dropped to 7.2 percent from 8.5 percent in November, the lowest rate since November 2013 and the fourth consecutive slowdown, Nationwide Building Society said in a statement on its website today. Prices rose 0.2 percent on the month for a third straight increase.

Figures from the Bank of England this month showed mortgage approvals fell to the lowest in more than a year in October. Part of the slowdown is due to stretched affordability, and the BOE acted to prevent a buildup of unsustainable lending in June by putting restrictions on the number of riskier home loans.

“While the pace of house-price growth has moderated in recent months, activity has slowed more sharply,” Robert Gardner, chief economist at Nationwide, said in the statement. “If the economic backdrop continues to improve as we and most forecasters expect, activity in the housing market is likely to regain momentum in the months ahead.”

“Hopefully, this will set the stage for house-price growth gradually converging with income growth in the quarters ahead,” he said.

The average house price stands at 188,559 pounds ($292,400), with growth for the three months to December at 1 percent compared with 0.9 percent in the quarter through November, Swindon, England-based Nationwide said. The 7.2 percent gain in values nationally this year compares with 8.4 percent in 2013.