House price growth hits a five-year low as Brexit uncertainty continues to plague the market

Annual house price growth has hit its lowest level for more than five years, according to the Land Registry.

Its House Price Index for October has revealed annual growth was at 2.7%, the lowest rate since July 2013.

The annual figure is down from 3% the previous month, and put the average property price at £231,095.

Prices on a monthly basis were also down 0.2%.

The data would have reflected deals done months before October.

House prices grew fastest in the north-west region, increasing by 4.9% in the year to October, but were down 1.7% in London over the same period.

Transactions across the UK continued to fall, sliding 8.8% annually across the country during August.

However, Scotland and the north-east of England bucked the trend as the only parts of the UK to register an increase in sales, up 9.2% and 1.2% respectively.

Transactions in England fell by the most at 10.8% on a country level, while on a regional basis London saw a 15.8% decline.

The data also showed the extent of the premium being paid on new-build properties.

The average price of a new-build was £301,753 during August, up 10.5% annually, compared with £228,193 for secondhand stock which was up 2.7%.

Commenting on the data, Sam Mitchell, chief executive of Housesimple.com, said: “The Christmas slowdown started a little earlier this year, and buyers and sellers alike are probably feeling a little jaded.

“There is so much uncertainty swirling around right now, and buyers and sellers will be more reluctant to make a decision until they know whether we’re leaving the EU with a deal or no-deal – or if we’re even leaving the EU.

“The property market is reacting to the state of limbo that the country finds itself in, although there are pockets of the country such as the north-west and Yorkshire which seem to be more Brexit-proof than regions such as London and south-east.

“Looking ahead to 2019, it’s likely to be a quiet start to the year, at least until the rescheduled Commons vote takes place.

“Once we have a better idea of our future relationship with the EU, that might inject some confidence into the market.

“At the end of the day, people still need to move house and at least they will have a clearer picture as to what they’re facing down the road.”

x

Email the story to a friend



4 Comments

  1. GPL

     
    ……and The Ministry for the Bleedin Obvious commented
     
    ”2019 is going to be another Challenging Year for all the reasons that property professionals know”  
     
    ……meanwhile, a Government Spokesperson commented
     
    ”the population will need air in order to breathe next year”  
     
    ……also, a Weather Expert stated
     
    ”2019 is going to be a year of mixed weather with rain, sun, clouds, dry/wet spells likely”
     
      ……and some Late News!
     
    ”Santa has confirmed that Christmas 2019 is likely to be on 25th December”  
     
    Oh, and some breaking news……
     
    “walking on the cracks of pavements may damage your health”  
     
    Merry Christmas to One & All (are we allowed to say that anymore?)   🙂    
     
     

    Report
  2. P-Daddy

    Oh here we go again….Brexit has caused everything.

    The opener is about the rate of house price inflation…that is a big reason why the market is faltering. Too high a price, the level of indebtedness and mortgage funds required and the affordability tests and their application by banks and building societies will stop the market. Income is not rising at this level  and of course inflation eats into disposable income. Stamp Duty adds to the woes, as it is yet more cost, probably incorporated into the mortgage request. The stinger is that the average price of new homes is now over £300,000 and well above the secondhand market average and this sector is pulling lots of buyers seduced by help to buy. Therefore, resales have lost a lot of their target market. The stamp duty surcharge has scared off a lot of investor buyers and they were fuelling the boom, buying off plan. The only consequence of the Brexit debacle is that international companies and buyers who would chose London as a place of work are holding back to a degree.

    The bigger the boom the greater the risk to the market…and this boom came off the back of a huge market correction where, banks and countries became technically bankrupt!

    Don’t be swayed by the angry of the internet and the front pages of the Daily Mail and Express….they are making us useless as a country! I love what Ben Elton said on the radio this morning ‘when I started writing and planning a live tour, we were 1 country occupied by two sexes…but now…

     

    Report
    1. surrey1

      Spot on.

      Report
  3. cyberduck46

    >Its House Price Index for October has revealed annual growth was at 2.7%  
     
    Still 2.7% though. Take London away and it’s a bit more.  
     
    The doom and gloom merchants are the main cause of problems. It’s either boom or bust.  
     
    Brexit was certainly not on people’s minds too much outside London until the blanket coverage of late with each media source requiring 2 stories a day.  
     
    The builders SP’s are swinging around all over the place with a downward trend. RDW’s SP was up 10% on the day at one point during trading last week.  
     
    The longer the uncertainty goes on and the hysterical reporting continues the more chance of a proper recession.
       

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.