LONDON: British house prices unexpectedly fell in December compared with November, their first decline in six months, mortgage lender Halifax said on Monday, adding to signs of weakness in the country’s housing market since the 2016 Brexit vote.
House prices slipped by 0.6 percent month-on-month after a 0.3 percent rise in November, Halifax said.
Economists taking part in a Reuters poll had expected prices to rise by 0.2 percent.
On an annual basis, house price growth slowed to an annual 2.7 percent in the three months to December, weaker than a rise of 3.9 percent in November. The Reuters poll of economists had pointed to a 3.3 percent rise.
Shortly before the referendum decision to leave the European Union in June 2016, Halifax was reporting annual gains in house prices of around 10 percent.
The pound’s fall after the vote pushed up inflation and added to pressure on the finances of households. Furthermore, many businesses are holding back on investment decisions as they await clarity on Britain’s future relationship with the EU.
Samuel Tombs, an economist with Pantheon Macroeconomics, said the Bank of England’s first interest rate hike in more than a decade, made in November, was also weighing on the market.
“Halifax’s data suggest that the recent jump in new mortgage rates has poured cold water on a market that already was flagging,” he said.
Two surveys published earlier on Monday showed that British shoppers tightened their belts over Christmas, leading to the first year-on-year fall in spending since 2012, and leading businesses aim to do the same over 2018.
“The housing market in 2017 followed a similar pattern to the previous year,” Russell Galley, managing director of Halifax Community Bank, said.
“House price growth slowed, whilst building activity, completed sales and mortgage approvals for house purchase all remained flat. This has been driven by a squeeze on real wage growth and continuing uncertainty over the economy.”
However, a shortage of homes up for sale was likely to continue to shore up the market and Halifax reiterated its forecast for growth of between 0 and 3 percent in house prices in 2018.
Last week, rival mortgage lender Nationwide said its measure of British house prices grew last year at its slowest pace since 2012 and in London it fell for the first time in a full year since 2009.
UK house prices fall for first time in 6 months
UK house prices fall for first time in 6 months
S&P affirms UAE sovereign credit ratings at AA/A-1+ amid regional tensions
JEDDAH: The UAE’s sovereign credit ratings have been affirmed at AA/A-1+ with a stable outlook, as S&P Global Ratings highlighted the country’s strong fiscal buffers, diversified economy, and policy flexibility in the face of escalating regional conflict.
The agency cited the UAE’s consolidated net assets, estimated at 184 percent of gross domestic product in 2026, and its low general government debt of around 27 percent of GDP, as key buffers against economic shocks.
Sovereign credit ratings play a key role in determining a country’s borrowing costs and investor demand for its debt. A high rating signals strong fiscal health and policy stability, helping governments attract foreign investment and access global capital markets at favorable terms.
S&P noted that “our baseline forecasts carry a significant amount of uncertainty” amid heightened tensions involving Iran, Israel, and the US, including potential threats to key infrastructure.
The report added: “We also believe the authorities will deploy their substantial policy flexibility to counteract the effects of volatility stemming from geopolitical tensions in the Gulf region on economic growth, government revenue, and its external accounts.
“We believe this flexibility will enable the UAE to withstand periods of low oil prices and, more importantly, the temporary disruption of oil production and export routes.”
The UAE is facing a tense geopolitical environment amid escalating Iran-Israel-US conflicts. Threats around the Strait of Hormuz have nearly stopped vessel traffic, fueling oil market volatility and investor concern.
The ratings agency also emphasized the UAE’s diversified economic base, with non-oil sectors accounting for roughly 75 percent of GDP, as a stabilizing factor.
Strategic infrastructure, including the Abu Dhabi Crude Oil Pipeline to Fujairah, enables the country to bypass the Strait of Hormuz and safeguard oil exports, while ADNOC’s overseas storage investments further mitigate risk.
Despite the risks, S&P expects sectors such as financial services, trade, and tourism to remain resilient. It forecasts that UAE growth will moderate to 2.2 percent in 2026, down from 5 percent in 2025, reflecting potential impacts from expatriate outflows, reduced tourism revenue, and lower real estate demand.
S&P cautioned, however, that “we now expect weaker economic and external performance due to increased intensity, scope, and potential duration of conflict in the Middle East,” underscoring that prolonged disruption could weigh on fiscal and external accounts.
The affirmation underscores investor confidence in the UAE’s ability to navigate short-term geopolitical challenges while maintaining long-term stability. Analysts said the country’s large liquid asset buffer and effective policy tools will likely contain the credit impact of regional tensions and support continued economic growth.
The UAE has consistently maintained strong and stable sovereign credit ratings, reflecting a resilient and diversified economy, as well as prudent fiscal management.
Despite occasional caution during regional tensions or oil market swings, ratings have remained high, underscoring the country’s policy flexibility, fiscal strength, and appeal to global investors.
