UK house prices see first annual increase in 9 months

British house prices increased by 1.8 per cent annually in March, marking the first rise since June of the previous year, following a 0.2 per cent  decline in February, according to official data cited by Reuters on Wednesday.

Meanwhile, private rents saw an 8.9 per cent increase in the year to April, down from 9.2 per cent in the previous 12 months, indicating the first slowdown in 2024.

The UK housing market has shown signs of recovery from last year’s downturn, driven by a surge in borrowing costs. A decrease in inflation has enhanced household incomes and raised the possibility of interest rate cuts.

However, a less-than-anticipated drop in UK consumer price inflation has led investors to reduce their expectations for an initial interest rate cut by the Bank of England in June.