Despite the continued uncertainty surrounding the UK’s exit from the European Union, one area that has remained remarkably buoyant is house prices. However, it appears that all the Brexit uncertainty is finally hitting this sector too.
Rightmove has recorded a marginal fall in house prices in September, with the property website explaining that the “autumn bounce” usually experienced at this time of the year isn’t happening, the Guardian reported.
According to the Rightmove data, the average price of newly listed homes on the platform dropped by 0.2 per cent, which equates to £730, compared to August. What’s more, the number of properties being listed for sale is also considerably lower than would be expected at this time of the year.
Property listings fell by 7.8 per cent, compared to September last year, while the number of sales agreed is also 5.5 per cent lower across all regions of the country.
Miles Shipside, director and housing market analyst at the organisation, told the news provider that the September figures are a contrast to what was happening in the market in August.
“In August, we reported a pre-Brexit buying spree with the number of sales agreed up by over six per cent compared [with] the prior year, as buyers and sellers decided to get deals secured well before the next Brexit deadline,” he said.
However, he added that heightened tensions surrounding Brexit as the deadline for the UK leaving the EU gets closer have affected the market’s performance this month. This may present opportunities for those looking to take their first step onto the housing ladder though, with properties potentially available at lower price points than in the past.
This Is Money recently reported on the latest figures from the Office for National Statistics (ONS), which don’t show a decrease in house prices but do indicate that there’s been a slowdown.
According to the data, the average value of homes in the UK increased by just 0.7 per cent in July, which is the slowest growth recorded for seven years.
The picture is different in regions such as the north east and south east, however, where house prices fell in July. The south east experienced a 0.7 per cent fall in property prices, with the news provider suggesting that this indicates that the slowdown in London is now spreading to areas close to the capital.
Jonathan Hopper, from Garrington Property Finders, said that the struggles of the market in London are having a knock-on effect. “The sheer size of the market in London and the commuter counties has acted as a deadweight on the English market as a whole – where price growth is now barely in growth territory,” he asserted.
However, there are some parts of the UK that have seen their housing markets perform considerably better. In Wales, for instance, the ONS data revealed that annual price growth is 4.2 per cent.
If you’re looking to move home, or buy your first property in the coming months, make sure you have experienced property solicitors in Surrey to help guide you through the house purchasing process.