Buyers’ confidence was dented by the increased Brexit uncertainty, causing asking prices for UK homes to slide for the first time this year. Average asking prices for residential properties advertised by Rightmove dipped by 0.2 percent in July following a rise of 0.3 percent in June. July’s slump suggests there could be underlining uncertainty within the housing market as the data contrasts with signs of improvement from a survey of chartered surveyors.
Commenting on this morning’s data, Miles Shipside of Rightmove noted: “The housing market fundamentals remain largely sound in many parts of the country, but the current political climate means that the crucial ingredient of confidence has been impaired, and that is causing some potential buyers and sellers to hesitate.”
The euro, meanwhile, is putting in a mixed performance.
The single currency failed to benefit last week as data revealed that the Eurozone industrial production rebounded in May by 0.9 percent following a weak start to the year.
Eurostat showed that Germany suffered from one of the largest decreases in production, plummeting by -4.3 percent.
Economist at Dutch ING Bank Bert Colijn added: “Don’t let the numbers fool you. Without an improved trade outlook, manufacturing could be in for a weak second half of the year.”
Demand for the euro remains limited amid bets that the European Central Bank (ECB) will introduce more stimulus this year.
Looking ahead to Tuesday, the pound could edge up against the euro following the release of the UK employment data if average earnings increased.
Meanwhile, the single currency could slide following the release of the German ZEW economic sentiment survey for July.
If sentiment slumps by more than forecast in July it could leave the euro out on a limb.