U.K. house prices grew at a much slower pace in October compared with September, a survey showed Wednesday, signaling the housing market has cooled amid accelerating inflation and political uncertainty linked to Brexit.
The Royal Institution of Chartered Surveyors said its monthly house price balance dropped 5 points, to plus 1 in October, below the expectations of analysts polled by The Wall Street Journal, who predicted a reading of plus 3.
A reading of plus 1 means that one percent more respondents--property professionals--to the survey saw a house price rise than a fall in prices.
"The combination of the increased cost of moving, a lack of fresh stock coming to the market, uncertainly over the political climate and now an interest rate hike appears to be taking its toll on activity in the housing market," said Simon Rubinsohn, RICS's chief economist.
Earlier this month, The Bank of England raised borrowing costs for the first time in a decade, increasing the benchmark interest rate to 0.5% in an effort to curb accelerating inflation.
Economic growth had already slowed sharply this year as accelerating inflation prompted British shoppers to rein in their spending.
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(END) Dow Jones Newswires
November 08, 2017 19:15 ET (00:15 GMT)