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Brexit and the UK housing market

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The economy and future of Britain is currently hanging on the Brexit deal amidst concerns of uncertainty. With speculation over the outcome, surveys published recently found the housing market is already being affected.

Rightmove data* found that asking prices fell for a second month this December.

The price of properties has fallen by 3.2% in the last two months. Asking prices are £10,000 lower on average.

The main reason for the fall in the market is down to uncertainty combined with the typical seasonal lull that Christmas and New Year brings.

However, there have been reports of renewed buyer interest in the market. Remortgages have increased as well due to customers looking to tie into new deals before the Brexit crunch.

The property market has been forecasted for the worst annual performance in a decade.

Rightmove is predicting zero growth in UK prices in 2019. This is due to stretched affordability and uncertainty around the relationship with the EU.

Hotspots like London and South-East England recorded the biggest annual falls in asking prices this year.

The dip in prices will be welcomed by new buyers and those on lower incomes. However, the British economy relies on the cornerstone of the property market. With a stagnant or falling market analysts expect overall spending to carry on reducing. Amidst Brexit uncertainty, expenditure on household spending including food, beverages and clothes dropped this November.

The above post does not constitute advice – financial, legal or otherwise. The information within this article is the author’s own opinion and do not necessarily reflect the views of SO Media or So Smart Money.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

*https://www.rightmove.co.uk/news/house-price-index/

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