Prices of house had increased during February at the slowest rate of 0.6% since September 2012. However, in London there was a fall in the price by 3.8%. ONS had informed that although there was inflation, it was stable at 1.9% during March. Due to the numbers, there is no pressure on Bank of England for increasing the interest rates. Bank of England has predicted clear signs of inflation with the rate of price increasing at 2%. During last month, rates were constant at 0.75%, the same at which rates have stuck to since August.
ONS stated that the increase in price of housing have slowed down in past 2 years. During February, the average price of housing in UK had gone down to 226,000 pounds which was 1000 pounds more during 2018. This lowering of housing price has been the lowest since mid 2009. However, the price of housing in the city of London has still managed to remain one of the highest to buy property at the average price of 460000 pounds. Senior economist from Hargreaves Lansdown, Ben Brettell has commented that this time the decrease in house pricing in London has been the most following the immediate consequence of financial crisis. After this situation, policy makers would make efforts at cutting down on risky mortgage lending. However, the lurking uncertainty over the issue of Brexit is also one of the main reasons behind the falling housing market in country’s capital.
Few other analysts have hinted towards subdued housing market. UK’s largest lender, Halifax had stated towards the beginning of April that the prices of property have gone down by 1.6% during March compared to what it was in February. While economists had predicted the inflation rate to be 2%, it was finally seen at 1.9% by the latest calculation of inflation rate by Consumer Price Index.