The Housing Market
The latest Bank of England Inflation report (May 2019) provides ample corroboration of the trends Acadata has been reporting on for some months now. Commenting on the slow-down in house prices (according to the Bank the slowest rate of inflation since 2013), the report links this to Brexit related uncertainty, affordability constraints, policy impacts on Buy-to-Let and the increase in housing supply. The Bank suggests that house price inflation and housing investment growth “are expected to fall further in the near term”, but that “both are expected to pick up as headwinds from uncertainty dissipate and stronger income growth supports the demand for housing”. Clearly, much depends on an early resolution to Brexit, and although there does seem some renewed momentum, the “near term” could be some while yet.