Skip navigation

Gloucestershire Business News

House prices fall for fifth consecutive month

House prices in the UK have fallen for a fifth month in a row.

The price of the average property in January was £258,297, down by 0.6% on December, according to Nationwide Building Society.

Annual house price growth slowed to 1.1%, down from 2.8% in December.

The country's biggest building society said it would be hard for the market to regain much momentum in the near term.

Robert Gardner, chief economist at Nationwide, said "economic headwinds are set to remain strong", as rising prices continue eating into household budgets, the BBC reported.

He added that the affordability of mortgages would remain challenging in the short term due to higher interest rates, while saving for a deposit was proving a struggle for many, given the rising cost of living.

Yesterday, the Bank of England reported lenders had approved fewer mortgages than expected in December, about 35,000 compared with more than 46,000 in November.

That is the lowest number since January 2009, excluding the pandemic lockdowns.

Nationwide said the decline in approvals followed a big slowdown in mortgage applications following the government's mini-budget in September.

However, it said there were signs mortgage rates were slowly starting to improve.

Mortgage rates rose throughout last year as the Bank of England put up interest rates to tackle the soaring cost of living.

They spiked above 6% - their highest level for 14 years - after Liz Truss's mini-budget sparked panic on financial markets.

Since then markets have calmed and mortgage rates have fallen back somewhat, but they remain much higher than a year ago.

Nationwide's latest figures suggest mortgages are less affordable in all regions compared with 2021.

Related Articles

Versarien's revenues halve and losses rise Image

Versarien's revenues halve and losses rise

Forest of Dean-based advanced engineering group Versarien saw its revenues halve last year.

Gloucestershire company launches same-day service Image

Gloucestershire company launches same-day service

Gloucester-based Freemans Event Partners has launched a brand-new around-the-clock foodservice logistics offer.

Gloucester business expands at Elmbridge Court Image

Gloucester business expands at Elmbridge Court

Just three offices are now available for rent at Elmbridge Court, following the latest letting.

Cirencester town centre to deliver improved parking Image

Cirencester town centre to deliver improved parking

Better parking and traffic control improvements for Cirencester residents and businesses.

Copyright 2024 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.