Squeeze On UK Household Finances

British households' current financial pressures intensified at the sharpest pace in seven months in February, results of a survey by IHS Markit and market research company Ipsos Mori revealed Monday. The seasonally adjusted Household Finance Index, of HFI, dropped to 42.2 in February from 42.9 in January. 

Any score below 50 suggests pessimism regarding finances among the U.K. households. UK households remained downbeat about their financial prospects over the next year, with the corresponding index falling to 47.6 in February from 47.7 in January. 

Workplace activity increased at a solid rate in February, while survey respondents indicated another reduction in job security and only a marginal rise in income from employment. Strong inflationary pressures continued to have a negative influence on financial well-being in February, with cash available to spend falling at the fastest pace for ten months. 

The survey also revealed that 60 percent of UK households anticipate a Bank of England rate rise within the next six months, up sharply from 45 percent in January. The average asking price for a house in the United Kingdom was up 0.8 percent on month in February, property tracking website Rightmove said on Monday - coming in at 300,001 pounds. 

That follows the 0.7 percent increase in January. On a yearly basis, house prices climbed 1.5 percent, accelerating from 1.1 percent in the previous month. "This month's rise of 0.8 percent is well below the 1.6 percent monthly average at this time of year over the last 10 years, and it is wise for sellers to be cautious and not to over-price given stretched buyer affordability," said Miles Shipside, director of Rightmove.