London – House prices in Britain recorded their first quarterly decline in more than four years. Prices’ decline in April in particular came unlike all forecasts, which highlights a sharp regression in the British properties market’s activity.
Prices fell by 0.2% in the Q1 2017 compared to the same period in 2016…while it dropped by 0.1 during April after it settled stable in March, according to data published by mortgage lender Halifax on Monday.
These figures show that prices didn’t increase all over the four past months and since the beginning of this year, despite analysts’ forecasts that expected the prices of British houses to ascend by 0.1 during April.
All indications point to a deceleration in the housing activity in the UK. The annual growth of this sector recorded the weakest pace in the last four years according to the Construction Industry Council (CIC).
The Bank of England has also said that the number of mortgages being approved has fallen to its lowest level in six month in April. This fall leaves the average cost of a house or flat at £219,649.
The massive profits bagged from houses’ prices over the past years caused a drop in the demand because buyers cannot afford high prices. However, the low demand still provide some support for prices.