Britons Less Optimistic on House-Price Gains as Spending Cuts Curb Economy - Bloomberg

Britons Less Optimistic on House-Price Gains as Spending Cuts Curb Economy - Bloomberg

The number of Britons who expect house prices to rise this year decreased in the last three months as concerns about the economy mounted, Rightmove Plc said, citing a survey.

About 24 percent of 28,401 U.K. consumers surveyed this month said prices will be higher in a year, the operator of Britain’s biggest property website said in a report released in London today. That compares with a result of 27 percent in October and 53 percent a year earlier.

House prices may remain under pressure this year as banks curtail lending and the government steps up spending cuts to tackle a record budget deficit. Britain’s economy unexpectedly shrank 0.5 percent in the fourth quarter, while inflation accelerated to an eight-month high in December, deepening a split among Bank of England officials on the future of policy.