UK house price growth slows after Brexit vote – business live

Discussion in 'Market News' started by Lily, Aug 11, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    All the latest economic and financial news, including new signs of weakness in the British economy

    8.03am BST

    Britain’s house prices rose at the slowest rate in three years in July, in the latest sign that the EU referendum has hurt the economy.

    “The rebound in the key 12 month indicators in the July survey suggest that confidence remains more resilient than might have been anticipated.”

    RICS reporting London most affected by house price slowdown in July unsurprising as prime central...#ukhousing

    ... London residential has oversupply, price falls & dependent on now uncertain international investors.#ukhousing

    7.50am BST

    Good morning, and welcome to our rolling coverage of the financial markets, the world economy, the eurozone and business.

    Today, City investors are fretting about the Bank of England’s new stimulus programme after its new bond-buying spree drove UK borrowing costs to record lows.

    Anticipation that the Bank will keep buying bonds has helped push up their price – which in turn pushes down on the yield – and for some three- and four-year bonds the price rose so much that the yield turned negative.

    Negative yields have happened once before since the 23 June vote, effectively meaning that the government does not have to pay any money to encourage investors to buy its debt.

    Related: City turbulence drives some bond yields into negative territory

    The Bank wants to stimulate the economy by bringing down interest rates, but the Bank is not acknowledging the negative impact these measures are having on pension deficits, and neither is the government.

    Thursday's FT:
    Fears mount for pensions as gilt yields touch negative territory#tomorrowspaperstoday #bbcpapers

    Our European opening calls:$FTSE 6824 down 42
    $DAX 10662 up 11
    $CAC 4454 up 2$IBEX 8658 down 1$MIB 16791 down 1

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