Mixed messages on UK house prices
The Department for Communities and Local Government (DCLG) released the latest house price data yesterday showing a year on year rise of 8.9% compared with the previous 8.6%. The average House price stood at £199,467.
The figures support the housing market surveys which show resilience house price growth at the end of last year following two interest rate rises and despite forecasts for higher rates to come. However, this mornings UK Royal Institute of Chartered Surveyors (RICS) reported a slump in its house price index, warning that finally the Bank of England’s interest rate hikes were beginning to take effect.
The balance of surveys seeing higher prices over those seeing lower prices was down 37 from 46.9 in November – the lowest reading since August last year. Having raised rates in August and November last year the RICS said last weeks surprise rate move will likely further dampen the market.
Oil prices fell below $53 a barrel overnight as investors appeared to doubt OPEC’s resolve to trim production and continued to focus on the mild winter and high fuel stockpile in the United States. U.S Crude fell to $52.38 while London’s Brent was down 52 cents to $52.60. Oil prices have dived 15% in the last two weeks on Hedge Fund selling and mild weather in the U.S., touching a 19 month low of $51.80 before recovering last Friday.
Ahead of Friday's UK Retail Sales for December a number of retailers have issued relatively upbeat reports this morning. Thorntons says like for like sales were up 4.2% in 4 weeks to Jan 6, while fashion and furnishings chain Laura Ashley says its normalised annual trading profit would exceed forecast for the year and fashion chain Ted Baker posted and 11% rise in Christmas sales. Tesco, Britain’s biggest retailer tops forecasts with its Christmas sales thanks to demand for premium and organic foods.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
The figures support the housing market surveys which show resilience house price growth at the end of last year following two interest rate rises and despite forecasts for higher rates to come. However, this mornings UK Royal Institute of Chartered Surveyors (RICS) reported a slump in its house price index, warning that finally the Bank of England’s interest rate hikes were beginning to take effect.
The balance of surveys seeing higher prices over those seeing lower prices was down 37 from 46.9 in November – the lowest reading since August last year. Having raised rates in August and November last year the RICS said last weeks surprise rate move will likely further dampen the market.
Oil prices fell below $53 a barrel overnight as investors appeared to doubt OPEC’s resolve to trim production and continued to focus on the mild winter and high fuel stockpile in the United States. U.S Crude fell to $52.38 while London’s Brent was down 52 cents to $52.60. Oil prices have dived 15% in the last two weeks on Hedge Fund selling and mild weather in the U.S., touching a 19 month low of $51.80 before recovering last Friday.
Ahead of Friday's UK Retail Sales for December a number of retailers have issued relatively upbeat reports this morning. Thorntons says like for like sales were up 4.2% in 4 weeks to Jan 6, while fashion and furnishings chain Laura Ashley says its normalised annual trading profit would exceed forecast for the year and fashion chain Ted Baker posted and 11% rise in Christmas sales. Tesco, Britain’s biggest retailer tops forecasts with its Christmas sales thanks to demand for premium and organic foods.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
posted by Drs Search @ 10:15 AM
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