Brexit uncertainty is continuing to kill house prices

Abigail Fenton
·Writer
London house prices continue to take a hit. Picture: Michael Crabtree/PA Archive/PA Images
London house prices continue to take a hit. Picture: Michael Crabtree/PA Archive/PA Images

The housing market is continuing to take a hit as Brexit uncertainty wages on. Property prices have seen a monthly marginal drop, according to the latest UK House Price Index (HPI) released on Wednesday.

Property prices across the nation fell by 0.1% between October and November 2018, according to the HPI’s monthly estimates, based on sales data from the HM Land Registry, Registers of Scotland and Land and Property Services Northern Ireland.

In England, the average house price fell by 0.1% between October and November, with the regional data showing the North East saw the greatest monthly price rise of 1.3%, while Yorkshire and the Humber saw the most significant drop, down by 1.3%.

READ MORE: UK cities with fastest rising house prices in 2018

But it’s not all doom and gloom — the HPI also shows that UK property prices have risen by 2.8% over a year. Prices in England grew by 2.6%, taking the average property value to £247,430, and data shows the West Midlands saw the greatest price rise of 4.6%.

Things continue to look bleak in the capital, however, as London house prices saw the biggest price fall of 0.7%. House prices in the capital have been falling month-on-month since July 2018.

The report also revealed that there were 419 repossession sales in England in September 2018. The lowest number of repossession sales was in the East of England, where there were only seven, while the highest was in the North West, where there were 98.

Things look better in Wales, where property prices are on the up, rising by 0.2% since October and 5.5% over the year, taking the average property price to £161,499. There were 39 repossessions for sale in Wales in September 2018.

READ MORE: Where UK house prices are heading in 2019

Andy Solomon, property expert and CEO of internet marketer Romdel, said: “If the relative calm before the storm has brought out a further reduction in house prices, transaction levels and buyer interest, one must wonder what the forecast will be now the political headwinds have hit gale force level following yet another disastrous Brexit vote.

“We will no doubt see many buyers and sellers batten down the hatches until further notice, but once stability does return, it won’t take much for the UK property market to dust itself off and activity to pick up once again. The question is, how much damage will have been done before we reach this point and how long will it take to rebuild?”