saw the lowest rise in house prices since the financial crisis of 2008,
according to property website Rightmove.
Why? Brexit uncertainty seems to be taking a toll on house prices.
A no deal Brexit will shave more than 10 per cent off UK house prices.
This is the forecast for next year. from a top global credit
Poor (S&P), one of the world’s three biggest providers of government and
company credit scores to investors, predict the decline will hit many people’s
most valuable asset even earlier.
crashes out of the EU at the end of this month, house prices will end the year 1.7
per cent lower than in 2018.
then tumble another 10.2 per cent in 2020 and another 6.1 per cent in 2021,
S&P said in a report on Tuesday. House values will start rising again in
2022, but a predicted 5.9 per cent increase that year will undo only some of
the previous losses.
On the other hand, if a Brexit agreement is struck before 31 October, the housing market will avoid slipping into the red.
S&P said it sees a 1.5% house price rise in 2020 after stagnation this year.
“We believe that Brexit uncertainty has already started to trickle down into lower housing prices and sales volumes, especially in London,” the agency said.
London house prices continue to fall.
data also showed that some parts
of London are continuing to see asking prices fall, in
some cases by £15,000 or more in a month.
current state of the housing market combined with the ongoing political
uncertainty from Brexit appears to be putting off many would-be sellers.
price of property coming to market at this time of year usually experiences an
“autumn bounce,” with an average rise of 1.6% recorded in the month of October
over the last 10 years.
year saw a “more sluggish” monthly rise of 0.6%, which was the lowest since
data paints a mixed picture for London, with some boroughs seeing sizeable
price falls and others experiencing price growth.
The average price of a home in Kingston upon Thames, south-west London, has fallen by more than £17,000 in a month – from £605,000 in September to £587,000 in October. Wandsworth in south London recorded a typical £16,000 price fall. But in other boroughs, including Britain’s most expensive area, Kensington and Chelsea, average prices continued to climb.
Number of houses listed on Rightmove has fallen.
average number of new house sale listings per week has fallen to just over
24,000 – its lowest at this time of year since October 2009. This is down 13.5%
on the same period a year ago.
contrast, many buyers “seem undeterred”, with the number of sales being agreed
virtually unchanged on a year ago, according to the site, whose latest data was
based on the asking prices of more than 122,000 properties put on sale between
8 September and 12 October.
Shipside, a Rightmove director, said:
upwards pricing power now pretty flat, some sellers who are motivated by
maximising their money seem to be holding back. They may be waiting for more
certainty around both achieving their price aspirations, and also the Brexit
Estate agent Benham & Reeves, said that while the sector was more subdued than usual, “the UK property market is yet to disappear down the Brexit abyss”.
Office for Budget Responsibility predict 5.9% drop for 2020.
spending watchdog the Office for Budget Responsibility said in July it expected
house prices will drop by 5.9 per cent in 2020 in the case of a no deal
the latest official data, house prices inched up by 0.7 per cent in July
compared with a year earlier, This was the
slowest pace of growth in almost seven years.
The sluggish growth in prices will be welcomed by those yet to get onto the housing ladder.
Mark Carney, the governor of the Bank of England, said:
“House prices have been expensive here for quite some time.” adding that housing affordability is “a challenge”.
“It’s first and foremost driven by supply dynamics in the country. It continues to strike me that there is twice as many people in the United Kingdom as there is in my native Canada and the same amount of houses are built every year in the United Kingdom as in Canada.”
If you are struggling with debt problems, Ramsey Lomax can help. contact Ramsey Lomax.
“over 12 years of dedicated advice.”
“People struggling with debt should seek help as early as possible.”
This is good advice from a leading charity. Taking the first step is always difficult but it is vital. There is help out there and solutions that can help, but you need to take the first step towards getting good debt advice. We have listened to the stories of 1000s of people and are constantly striving to help them. It is our mission to explore all their options and find a solution to help them become debt free. And what’s more, we have helped 1000s to achieve their goals since 2007, over 12 years of dedicated advice.
Finding a good debt advisor is often a relief. At Ramsey Lomax, we have years of experience in helping people. One thing to remember is that your chat with our advisors is completely confidential, free and without obligation. For many of our clients just getting it off their chests and having a sympathetic ear to talk to can make all the difference. At Ramsey Lomax, we understand ‘financial fear’. We have helped 1000’s of people to find a lasting solution to their debt.
Ramsey Lomax – fully authorised and regulated by the FCA, the Financial Conduct Authority. We also have a 5 star Trustpilot rating.
Taking that first step is not always easy but is a crucial step towards helping you to find financial freedom.