House prices in Britain fell 2.4 per cent last month, compared with the same month last year, according to Halifax.
The average UK house price fell by 0.3 per cent in July, meaning prices have declined for four months in a row.
The average house in the UK is now £285,044 ($362,940).
“In reality, prices are little changed over the last six months, with the typical property now costing £285,044, compared to £285,660 in February," said Kim Kinnaird, director of Halifax Mortgages.
"The pace of annual decline also slowed to minus 2.4 per cent in July, versus minus 2.6 per cent in June.
"These figures add to the sense of a housing market which continues to display a degree of resilience in the face of tough economic headwinds."
The Halifax's calculations mirror those of the Nationwide Building Society, whose own survey last week showed prices in July 3.8 per cent lower than a year previously – the largest fall in 14 years.
According to Halifax, prices have fallen 3 per cent since they peaked in August last year. Nationwide puts the decline over the same period at 4.5 per cent.
The effect of the Bank of England's fourteen increases in interest rates is now reducing demand in the economy but house prices are still proving resilient given the strength in wage growth and relatively low unemployment.
“Prospects for the UK housing market remain closely linked to the performance of the wider economy," Ms Kinnaird said.
"Several factors are providing support, notably strong wage growth, running at around +7 per cent annually. And, while the uptick in unemployment is likely to restrain that somewhat, it seems unlikely to reach levels that would trigger a sharp deterioration in conditions.
“Expectations of further base rate increases from the Bank of England were tempered by a better-than-expected inflation report for June.
"However, while there have been recent signs of borrowing costs stabilising or even falling, they will likely remain much higher than homeowners have become used to over the last decade."
First-time buyers
Some experts argue despite the support factors, the outlook for the UK housing market remains bleak.
“It's worrying to see yet another decline in house prices this month, as the UK sits on the cusp of a housing market crash, the risks of which will have only been heightened by the most recent base rate hike which could push house prices down even further," said Kate Anderson, deputy editor and housing expert at finder.com.
"It’s likely that we’re going to face big issues with the buy to let market and the impact that the rising cost of borrowing will have on renters.
"Landlords may find it unprofitable to continue due to increasing interest rates and sell up, creating further downward pressure on house prices and leaving renters with even fewer options."
Nonetheless, others say the woes in the buy-to-let market are creating better conditions for first-time buyers.
Ms Kinnaird from Halifax said activity among first-time buyers was holding up "relatively well", while some were "now searching for smaller homes, to offset higher borrowing costs".
"We've seen more first-time buyers in the past two weeks than in the previous two months," said Lewis Shaw, founder of Shaw Financial Services.
"This segment of the market is proving especially resilient.
"With the sell-off in the buy-to-let market in full swing, combined with an increase in more property for sale generally, aspiring homeowners can smell blood.
"First-time buyers are in an incredibly strong position and it's not uncommon to see them agreeing on purchases at 10 per cent to 15 per cent below the marketed price."
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Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
'Outclassed in Kuwait'
Taleb Alrefai,
HBKU Press
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MATCH INFO
Manchester United 1 (Greenwood 77')
Everton 1 (Lindelof 36' og)
The biog
Favourite book: You Are the Placebo – Making your mind matter, by Dr Joe Dispenza
Hobby: Running and watching Welsh rugby
Travel destination: Cyprus in the summer
Life goals: To be an aspirational and passionate University educator, enjoy life, be healthy and be the best dad possible.
The specs: 2018 Alfa Romeo Stelvio
Price, base: Dh198,300
Engine: 2.0L in-line four-cylinder
Transmission: Eight-speed automatic
Power: 280hp @ 5,250rpm
Torque: 400Nm @ 2,250rpm
Fuel economy, combined: 7L / 100km
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- Riders must be 14-years-old or over
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Match info:
Manchester City 2
Sterling (8'), Walker (52')
Newcastle United 1
Yedlin (30')
