The house prices in the UK drop again, the second time in one month. Family income is less flexible now and this affected the housing market. The reason behind it all could be because of rising inflation and the wage growth is not keeping up. The upcoming changes in the housing market are unpredictable at the moment because of the upcoming election. Consumers are even using their savings to keep up with the shop prices.

Key Takeaways:

• Current events such as Brexit are making the economy hard to predict
• Consumers are becoming more cautious with their spending, as a result of rising inflation, weak wage growth, and falling retail sales.
• A drop in family income is negatively affecting the property market, however a housing crash is still unlikely.

“The average price of a home fell by 0.4% over the month to £207,699, following a 0.3% drop in March, according to Nationwide. It was the first time that prices fell in two consecutive months in nearly five years and drove down the annual rate of house price growth to 2.6%, the weakest since June 2013”

Read more: https://www.theguardian.com/money/2017/apr/28/uk-house-prices-april-brexit-inflation-wages-nationwide