LONDON: British house prices fell unexpectedly last month as inflation continued to squeeze household budgets, dragging annual house price growth down to one of its weakest rates in years, figures from major mortgage lender Halifax showed on Wednesday.
Average house prices fell 0.6 percent in January after a 0.8 percent decline in December, Halifax said, well below a consensus forecast of a 0.2 percent rise in a Reuters poll of economists and the first time prices have fallen for two months in a row since just after June 2016’s Brexit referendum.
British annual house price growth has slowed since the vote to leave the European Union, though the impact has been concentrated in London and neighboring areas, with most other parts of the country relatively little affected.
House prices in the three months to January were 2.2 percent higher than the same time a year earlier, down from 2.7 percent in December and the weakest increase since July, when prices rose at the slowest pace since April 2013.
Howard Archer, an economist at consultants EY Item Club, predicted house prices would rise by two percent this year, as high inflation and Brexit uncertainty kept a lid on prices.
“Housing market activity is expected to remain lackluster as the marked squeeze on consumer purchasing power only gradually eases, confidence is fragile and appreciable caution persists over engaging in major transactions,” he said.
British consumer price inflation hit its highest rate in more than five years in November, and the Bank of England raised borrowing costs for the first time in more than a decade.
November also saw finance minister Philip Hammond scrap a tax on house purchases for almost all first-time buyers. Halifax said it was too early to see any impact from the change.
Archer said a shortage of housing made outright year-on-year price falls unlikely.
The Halifax data contrast with figures published last week by rival lender Nationwide, which showed a surprise pick-up in growth to 3.2 percent in January, the biggest rise since March 2017.
Nonetheless, the figures would make the BoE’s Monetary Policy Committee reluctant to signal a rapid pace of further interest rate rises when it publishes its next rate decision on Thursday, Samuel Tombs of Pantheon Macroeconomics said.
“The MPC ... can’t ignore the evidence of a housing market slowdown now in front of them, so we doubt that they will signal to markets tomorrow that interest rates could rise as soon as May,” he said.
UK house prices fall for second month in January
UK house prices fall for second month in January
Islamic banks’ market share in Turkiye rises to 9.2%: Fitch Ratings
RIYADH: Islamic banks in Turkiye lifted their asset market share to 9.2 percent in 2025 from 8.1 percent a year earlier, as financing and deposits outpaced the broader banking sector, a new analysis showed.
In its latest report, Fitch Ratings said financing and deposit market shares rose to 7.9 percent and 10.4 percent, respectively, by the end of 2025, compared with 7.3 percent and 9.4 percent in 2024.
The agency noted that new digital Islamic banks are emerging in the country, with investment from Gulf Cooperation Council countries expected to continue.
Turkiye’s strong ties with Islamic countries across the Balkans, Africa and the Middle East support the development of its Islamic banking sector, attracting investors and contributing to the industry’s growth.
In its latest report, Fitch stated: “Three recently established private Islamic banks (two digital) grew rapidly in the first nine months of 2025. Investment in digital participation banking from the Gulf Cooperation Council countries underscores the potential for further investment from the region.”
It added: “Planned establishment of new participation banks, and rapid growth of recently established banks – albeit from small bases – means that the segment landscape may be reshaped in 2026.”
Dubai Islamic Bank PJSC’s investment in digital bank TOM underscores the potential for further GCC investment.
Turkish regulators have approved the establishment of Halk Katilim Bankasi A.S. and Adil Katilim Bankasi A.S. (digital), while BIM Birlesik Magazalar A.S.’s application is pending.
Fitch added that state-owned participation banks may merge or pursue initial public offerings, potentially reshaping the banking landscape.
The report predicts Islamic banks’ market share will rise further in 2026, supported by strong internal capital generation and growth appetite. However, the non-performing financing ratio may increase moderately due to high inflows.
“The segment’s non-performing financings ratio deteriorated to 2 percent at end-2025 compared to 1.2 percent in 2024 but remained below the sector average of 2.5 percent,” said Fitch.
It added: “We expect pressure to persist given still-high financing rates, high but declining inflation, and the sensitivity of unsecured retail (lower share than conventional banks) and SME segments to economic cycles. We forecast a moderate increase in the segment NPF ratio in 2026.”
