U.K. February Nationwide house price index showed a sharper than expected fall, down 1.8% m/m and 17.6% y/y, versus our survey median estimates for declines of 1.5% m/m and 17.1% y/y. Data hence show that the deterioration of the U.K. housing market continues with sharp price falls, despite data from Halifax and Rightmove showing some monthly price gains as of late, partly associated with bargain hunting among cash-rich buyers. Nevertheless, nationwide data show that falling house prices and falling interest rates fail to lure buyers back to the market as unemployment is rising, together with depressed consumer sentiments. Although the BoE is likely to cut rates further, first time buyers are still finding it very difficult to get into the market, with many mortgage deals having been withdrawn
