UK home prices post biggest monthly drop in almost eight years

London - UK home prices plunged the most in almost eight years in April, adding to signs of weakness in Britain’s property market.

Values dropped 3.1% from March to an average £220 962, mortgage lender Halifax said in a report on Tuesday. That’s the biggest drop since September 2010. While that figure can be volatile, the quarterly measure also showed a decline. It fell 0.1%, a third straight drop.

Britain’s housing market has been cooling for the past two years, with London seeing the sharpest slowdown. Monthly mortgage approvals have slipped and reports point to waning interest from potential buyers.

“Housing demand has softened in the early months of 2018, with both mortgage approvals and completed home sales edging down,” said Russell Galley at Halifax.

He expects prices will be supported by a low level of housing supply, though they will rise no more than 3% this year.

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