UK house prices fall as incomes squeeze in slowing economy

Due to the weaker economy and decrease in household incomes in the UK, the price of UK houses dropped in February. The future of housing prices will continue to be effected by the economy and household incomes. Brexit is also an additional factor and is causing uncertainty in the housing market. Nationwide is predicting the growth of house prices to slow down due to low unemployment and a shortage of houses available. to On the other hand, the Bank of England released data which showed a sharp increase in mortgage approvals at the beginning of 2018 indicating a strong housing market. This data could be partially due to volatility in the market that occurs around the Christmas and New Year holidays.