Pound Slips on Housing Market Concerns
House prices fell by 2.5% in March, the biggest monthly decline since September 1992, the Halifax has said.The latest monthly figure from the UK's largest mortgage lender was significantly worse than many experts had expected.
House prices are now just 1.1% higher than they were a year ago, the slowest annual growth rate for 12 years.The Halifax has also revised its predictions and now expects prices to fall over the course of this year.
The Nationwide took a similar stance earlier this month after reporting that prices had fallen for five months in a row.
Although Halifax, the nation’s largest mortgage lender has yet to reject new mortgage applications, they have started to preference customers willing to put down a larger deposit on home loans. More specifically, they are offering a lower interest rate to people who can make a down payment of 25% or more on their home and hiking the rates for people who borrow more than 75%.
This will reduce the ability of UK citizens to finance the purchase of new homes, which would exacerbate the problems in the housing market and slow any eventual recovery. Meanwhile the Bank of England is the only central bank expected to alter interest rates this week. If consumer confidence also proves to be weak, this will build the case for a 25bp rate cut to 5% Thursday.
At 9.30am the pound stood around 1 1/4 cents lower at $1.9762.
House prices are now just 1.1% higher than they were a year ago, the slowest annual growth rate for 12 years.The Halifax has also revised its predictions and now expects prices to fall over the course of this year.
The Nationwide took a similar stance earlier this month after reporting that prices had fallen for five months in a row.
Although Halifax, the nation’s largest mortgage lender has yet to reject new mortgage applications, they have started to preference customers willing to put down a larger deposit on home loans. More specifically, they are offering a lower interest rate to people who can make a down payment of 25% or more on their home and hiking the rates for people who borrow more than 75%.
This will reduce the ability of UK citizens to finance the purchase of new homes, which would exacerbate the problems in the housing market and slow any eventual recovery. Meanwhile the Bank of England is the only central bank expected to alter interest rates this week. If consumer confidence also proves to be weak, this will build the case for a 25bp rate cut to 5% Thursday.
At 9.30am the pound stood around 1 1/4 cents lower at $1.9762.