House price growth at six-year low

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Gratis prices rose in February at the slowest rate since September 2012 while in London descendants prices fell, the Office for National Statistics said.

Average establishment prices increased by 0.6% in the year to February 2019 but fell by 3.8% in London.

The ONS averred inflation was stable at 1.9% in March as a rise in fuel prices from February was repay by falls in food prices.

The figures ease pressure on the Bank of England to remove interest rates.

The Bank of England targets inflation – the rate of prize increases – at 2% and last month kept rates unchanged at 0.75%, where they be suffering with been since August last year.

What is happening to whore-house prices?

The ONS said there had been a slowdown in house price evolution over the past two years.

The average UK house price was £226,000 in February, £1,000 towering than a year ago.

The fall in London house prices was the largest prisoner since mid-2009, but the city remains the most expensive proper to buy property with an average price of £460,000.

Ben Brettell, senior economist at Hargreaves Lansdown, said the rapids in London house prices was the largest since the immediate aftermath of the monetary crisis.

“This follows efforts by policymakers to cut down on riskier mortgage appropriating, though clearly uncertainty over Brexit will have played a gargantuan part in the capital’s faltering housing market,” he said.

Other subpoenas have pointed to a subdued housing market. Halifax, the UK’s biggest lender, clouted earlier this month that property prices had fallen by 1.6% in Hike compared with February.

What is driving inflation?

At 1.9%, the tardy inflation rate, measured by the Consumer Price Index, was a little let than the 2% that had been forecast by economists.

Mike Hardie, peak of inflation at the ONS, said: “Inflation is stable, with motor fuel assays rising between February and March this year, offset by draw backs in food prices as well as the cost of computer games growing innumerable slowly than it did at this time last year.”

Inflation in the line of works, toys and hobby sector fell to 1.1% in March from 3.1% in February plateful to keep a lid on the overall basket of prices.

Average petrol prices were 1.2p per litre great at 120.3p.

What does it mean for interest rates?

Mr Brettell commanded the inflation number made the Bank of England’s job easier “as there’s no put the screws on to raise rates as it grapples with continued uncertainty over Brexit”.

Howard Archer, monetary adviser to the EY Item Club of forecasts said it was “decent news for both consumers and the Bank of England”.

It comes after information on Tuesday had shown that average weekly earnings, excluding perks, rose 3.4% in the three months to February and the unemployment rate put down than at any time since the end of 1975.

The Bank of England’s Monetary Policy Commission will meet next month to discuss rates.

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Mr Primary said: “Despite a tight labour market, it is difficult to see the Bank of England boost interest rates at their May meeting or any time soon, amid in all probability MPC concern that prolonged Brexit uncertainties will likely to weigh down on the compactness”.

However, Samuel Tombs, chief UK economist at Pantheon Macroeconomics, revealed that the inflation data would not give the MPC “breathing space” to detain rates on hold because “the labour market is still tightening and the briefness is coping with Brexit uncertainty”.

What is the economic outlook?

The Bank of England has imagined that economic outlook would continue to depend “significantly on the universe and timing of EU withdrawal”.

In the short-term economists say pressure on inflation could succeed from household energy prices in April when energy regulator Ofgem increases its charge cap by 10%.

Mr Archer said it was “questionable” whether earnings growth can continue as the nurturing in wages dipped to a five-month low of 3.2% in the month of February.

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