There was a widely unexpected slowdown in GDP in Q1. Quarterly growth was recorded at 0.3% which was below both the preceding quarter (0.7%) and also the BoE’s expectation of 0.6%. While a minor upward revision is possible, the MPC have subsequently revised down their forecasts for this year to 1.9% (from 2.0%).
The three major House Price Indices (HPI’s) all continued to record a flat market from a price perspective, with the Halifax index last showing an increase in prices in December 2016. The Nationwide follows suit by recording minor falls in both March and April of this year. The historically flatter UK HPI records positive house price inflation for the first two months of the year followed by a -0.6% fall in their latest release covering March.
For the full report click here.