With house price falls being recorded by Rightmove, there is a knock on effect with the Pound as currency investors fear a general reduction in UK asset prices.
As our news item shows, sellers are now asking 2.2% less for their house than they were a month agao. Whilst it is too early to tell that the prices actually achieved for a house sale are also falling, these facts show that conditions remain tough in the UK property market.
The Pound has reversed its recent bull run by falling 1.6%, the largest fall in the currency since early June. It also weakened against the Euro and the Yen.
That house prices are still weak in the UK, is forcing investors to look hard at the strength of the UK economy, which is dependent, in part on the health of the property market.
Although RightMoves’ report may indicate the determination of house sellers in the quiet summer months, rather than a further weakening of the property market generally, this large fall in the Pound shows how fragile investor confidence is in the abilty of the UK to emerge from one of the deepest recessions on record.