MNI: UK Nationwide House Prices Lower In March

--UK Nationwide March house price index -0.2% m/m, 2.1% y/y

     LONDON (MNI) - UK house prices fell in March, falling 0.2% on the month,

with annual gains decelerating to 2.1%, down from 2.2% in February, the

Nationwide House Price Index showed.

     Annual house price growth in the Nationwide series has held in a 2 to 4%

range since March 2017, but is now bumping along at the lower ends of the range.

     Nationwide's Chief Economist Robert Gardiner said the fall in prices was

not unexpected given the still subdued consumer confidence.

     "On the surface, the relatively subdued pace of house price growth appears

at odds with recent healthy rates of employment growth, a modest pick-up in wage

growth and historically low borrowing costs. However, consumer confidence has

remained subdued, due to the ongoing squeeze on household finances as wage

growth continues to lag behind increases in the cost of living," he said.

     Gardner said a lack of supply continued to underpin the market, although

offset somewhat by rising pressures on household incomes.

     "Looking ahead, much will depend on how broader economic conditions evolve,

especially in the labour market, but also with respect to interest rates.

Subdued economic activity and the ongoing squeeze on household budgets is likely

to continue to exert a modest drag on housing market activity and house price

growth this year," he said.  

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MABDS$,M$B$$$,M$E$$$,MT$$$$]