Markets rebound after Huawei arrest sparked biggest sell-off since Brexit vote – business live
Shares are recovering in Asia and Europe after Thursday’s rout, but investors are still nervous following the arrest of Huawei’s CFO
- Latest: Footsie up by 100 points
- UK house prices growth slows
- Introduction: Huawei case weighs on markets
- China accuses US of hooliganism
- Asian markets have recovered some ground
- Coming up: US jobs report at 1.30pm
Several property experts are blaming Brexit uncertainty for the slowdown in UK property prices.
Here’s Mike Scott, chief property analyst at estate agent Yopa,
‘This suggests that the usual Christmas slowdown in the housing market has started early this year, as people wait for the outcome of the current political turmoil before making long-term commitments, such as buying a new home.
‘However, the economic fundamentals of low unemployment, low interest rates, growing wages and limited supply are all positive for house prices, and we therefore expect the market to pick up again in the new year.’
“The lowest rate of growth for six years is a reflection of how Brexit uncertainty has hit the property market for six.
“Without wanting to appear overly pessimistic, there’s every chance 2019 could be 2009 all over again.“People need to be preparing for that eventuality and the low level of transactions suggests they are.
OUCH! UK house prices growth has slowed to a six year low.
The Halifax has reported that the average house price declined by 1.4% in November, a substantial fall. On a quarterly basis, prices in September-November were 1.1% lower than in June-August.
“House price growth has slowed as we approach the end of the year, falling from 1.5% in October to 0.3% in November, with the average cost of a home now £224,578. While this is the lowest rate of growth in six years, it remains within our forecast range of 0% to 3% for 2018.
High employment, wage growth and historically low mortgage rates continue to make home ownership more affordable for many, though the need to raise a significant deposit still acts as something of a restraint on the market. This is largely offset by relatively limited supply of new and existing properties for sale, which continues to sustain house prices nationally.”
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Author: Graeme Wearden