020 7898 0500Nationwide releases its housing price figures for June yesterday and revealed that house price growth in the UK has fallen to its lowest level in five years. Year-on-year, prices grew by just 2% from 2.4% and, while analysts had expected the figure to come in at 1.7%, it is still disappointing news.
Interestingly, the market has been dragged down by a drop in London prices, which fell by 1.9% year-on-year. It is felt that poor economic growth and a tightening of household finances is largely to blame, which are factors that are likely to continue for some time yet. It is therefore reasonable to expect further disappointment in the months ahead.
Meanwhile, John Lewis has been hit by a significant fall in profits, with confirmation that it will make no profit at all in the first six months of the year. It will close five Waitrose stores in the near future which will obviously cause some job losses in the UK.
Today is quiet for UK economic data, but we will see the all-important final estimate of the GDP growth rate for the first quarter of 2018 tomorrow. We could see some sterling volatility in the aftermath of the result, particularly if the figures are more disappointing than initially expected.
