U.K. House Prices Stop Falling for First Time in 20 Months

U.K. House Prices Stop Falling for First Time in 20 Months


June 1 (Bloomberg) -- U.K. house prices stopped falling in May for the first time in 20 months, adding to evidence the property market slump is abating, a survey of real-estate agents by Hometrack Ltd. showed.

Average prices in England and Wales held at 155,600 pounds ($251,000) after they declined 0.3 percent in April, the London- based property researcher said in an e-mailed statement today. On the year, values dropped 9.6 percent.

The U.K.’s worst recession in at least three decades may be easing as the Bank of England pumps newly-printed money into the economy. Reports last week showed that consumer confidence held at the highest level in almost a year and house prices unexpectedly jumped by the most since 2007.

“The survey shows that pricing expectations among vendors has finally re-aligned to a level that is more in line with what the current pool of purchasers are prepared to pay,” Richard Donnell, director of research at Hometrack, said in the statement. “The outlook for the economy remains far from certain. It is too early to rule out future price falls.”

The number of new buyers registering with real-estate agents to browse property rose 6 percent from April, when it increased by the same amount, Hometrack said. The percentage of the asking price achieved rose to 90.3 percent from 89.6 percent the previous month.

Six of the 10 regions tracked by the survey reported no change in house prices. In the East Midlands, the North West, the West Midlands and Yorkshire values declined 0.1 percent from the previous month.

Nationwide Building Society said last week that house prices increased 1.2 percent on the month. Banks approved 27,685 loans for house purchase in April, up 3.7 percent from May, according to British Bankers Association data, and U.K. consumer confidence matched an 11-month high in May, GfK NOP said.

Bank of England policy makers, due to meet on June 4, will refrain from expanding their money-printing plan from the current 125 billion pounds, according to all but two of 39 forecasts in a Bloomberg News survey of economists.

BLOOMBERG