Brexit Is Causing UK House Prices To Fall Rapidly

Brexit Is Causing UK House Prices To Fall Rapidly

Industry surveys find that house prices in the UK have been falling and it seems they will continue to do so for the remainder of 2019

According to survey, house prices in the UK seem to continue to fall for the next six months, and for the rest of 2019 in London and the south-east of England. Other data shows that rents are falling as well, the average UK rent fell to £757 a month during the first three months of 2019, down from £772 a month – its value a year ago, continuing to decline as a consequence of the Brexit vote in 2016.

However, the biggest falls in rent have been in south-east England. Particularly in Derby, Steve Gadsby of Gadsby Nichols – a surveyor cited by RICS, stated: “Brexit is still the main issue causing market uncertainty. This is particularly relevant to mid and higher priced properties where purchasers seem to be awaiting a Brexit outcome before commitment.”

According to the Royal Institution of Chartered Surveyors (RICS), the average time it takes to sell a property remains at 19 weeks in the UK, and longer in the south-east of England, at 21.5 weeks, representing the longest period since 2017 when RICS first started recording the data. The market is also holding back potential seller from listing their homes for sale. The RICS said: “The ongoing decline in new instructions being listed for sale has intensified of late.”

House prices suffered a bigger drop than usual in 2018, dropping from £232,797 in August, to £230,630 in November, then recovered slightly in December but fell again in January of this year with the latest Office for National Statistics (ONS) House Price Index showing the average UK house price at£228,147, the lowest it’s been since May 2018. David Blake, a mortgage expert provides advice saying:

“Recent price drops in some regions mean that it’s becoming more of a buyers’ market, so you might be able to get a good deal. Besides, buying a property should generally be regarded as a long-term investment and, even if there is a short-term price drop, house prices will probably stabilize in the future. Mortgage rates are incredibly low right now and many will want to fix into a low rate to give themselves security as we move into a period of uncertainty. But don’t just jump into a fixed rate without considering the alternatives – there are plenty of flexible products that would leave your options to remortgage open if rates did start to change.”