London property prices dip for the first time in eight years as the BoE suggests a possible rate rise later this year. Consumer confidence also rose but overall they're worried about their finances. Laura Frykberg reports
It's one of the most expensive cities in the world to buy property. But for the first time in eight years, London house prices have fallen. Dropping by an annual 0.6 percent this month, according to mortgage lender, Nationwide. While across the UK prices rose in September, a dip in London's market, for some, has been a long time coming. (SOUNDBITE) (English) GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, PETER DIXON, SAYING: "Unfortunately the market does look very stretched, and I think some form of correction is due. It doesn't have to be a major one, but certainly a slow down in the rate of London price inflation would be welcomed by many people." At any other period, that may have been reason to keep rates at their record lows. Bank of England Governor Mark Carney though, has indicated a raise, in the relative near-term. In what would be the first rate hike in the UK in more than a decade. (SOUNDBITE) (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "We're talking about just easing a bit off the accelerator, to keep with the speed limit of the economy. And so interest rate increases --- when they come --- when and if they come --- will be to a limited extent." A new GFK survey shows consumer confidence edging up to a four-month high in September. BUT overall they're gloomier about the state of their finances. (SOUNDBITE) (English) GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, PETER DIXON, SAYING: "What we are seeing is a weakness in consumption triggered by higher inflation. If that is sustained for it for any length of time then clearly it will put much more down the pressure on the UK growth figures. " A sign perhaps of that, in the latest GDP data. Year-on-year IT's been revised down to 1.5 percent in Q2 against previous estimates of 1.7. The weakest growth for the quarter since 2013.