Forexpros – House prices in the U.K. unexpectedly declined in August, industry data showed on Wednesday.
In a report, the Halifax Bank of Scotland said its House Price Index dropped by 1.2% in August, after rising by 0.2% in July, whose figure was revised down from a 0.3% gain.
Economists expected the index to rise by 0.5% in August.
The report showed that U.K. house prices fell at an annualized rate of 2.6% in August, while prices in the three months to August were 1.0% higher than in the previous three months.
Commenting on the report, Halifax housing economist Martin Ellis said, “A recent decline in average mortgage rates has further boosted home affordability for those able to raise a deposit to make a new purchase.”
“Low interest rates are likely to continue to support the market whilst increased uncertainty about the economic outlook and pressures on householders’ finances constrain demand,” he added.
Following the release of that data, the pound pared gains against the U.S. dollar, with GBP/USD up 0.23% to trade at 1.5973.
Meanwhile, European stock markets were broadly higher after the open. The FTSE 100 jumped 2.1%, the EURO STOXX 50 rose 2.15%, France’s CAC 40 rallied 2%, while Germany’s DAX surged 2.3%.
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