Uk House Prices Decline In March

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Uk House Prices Decline In March

UK House Prices Decline 1% During March On High Rates

In a surprising turn of events, a 1% decline was seen in UK house prices. The last time a decline was seen in the UK house prices was in September 2023.

The data was shared by Halifax, a famous mortgage lender, which means it is accurate and credible. Additionally, the data aligns with the upbeat housing data from the UK.

High-Interest Rate Casts Doubts On Recovery

Halifax is a part of the larger banking group 'Lloyds' and is one of the major mortgage lenders in the UK. According to them, a decline in house prices was not unexpected given that it has been rising for the last five months.

They also added that the UK is going through a period of consistently high-interest rates. As a result, the sales of new homes have also taken a hit. This supply-demand imbalance was also a major factor that led to the decline in UK house prices.

After the recent report, the house prices are now 0.3% higher when compared with the last year. Both of these values are still below the forecast of around 1.45%.

In the last few months, there are several signs which hint at a recovery in the UK's housing sector. This is a pleasant surprise given that the UK's property sector has been under a slump for the last few years.

Another positive factor in the UK's economy was the number of mortgage approvals in March. The data shows that this metric has also hit a new high, a level only seen in September 2022.

Despite this little upside, the elephant in the room is the rate cuts from the BoE. Even today, there is no solid lead when it comes to the timing of the rate cuts from the BoE.

That's one of the major reasons why the mortgage rates are now sitting at such historic lows. When someone applies for a mortgage, they have to pay a higher interest rate due to the BoE's policy.

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