Land Registry reveals extent of Brexit slump as sales decline across UK

Sales volumes slumped in June, Land Registry data shows.

Provisional transaction figures in the latest Land Registry House Price Index suggest transactions were down by 6.4% across the UK.

The statistics, based on around 85% of registered transactions, show sales fell 5.8% in England, 13.4% in Scotland, 4.5% in Wales and 1.8% in Northern Ireland on an annual basis.

Meanwhile, house price growth bounced back from a seven-year low in August, the Land Registry says.

Average prices rose 1.3% annually and 0.8% on a monthly basis to £234,853.

This is a faster pace than the 0.8% annual and 0.3% monthly growth recorded in July.

House price growth was strongest in Wales where prices increased by 4.5% in the year to August, up from 3.8% in the year to July.

The lowest annual growth was in London, where prices fell by 1.4% over the year to August, followed by the south-east where prices fell by 0.6% over the year.

Mike Scott, chief property analyst for Yopa, said the data reflects activity at the time of the previous Brexit deadline extension at the end of March.

He said: “The official Government house price index for August shows surprisingly strong growth.

“Since it’s based on completions of home sales, these figures will largely relate to sales agreed in April, just after the Brexit deadline was extended and the looming threat of a no-deal Brexit was postponed.

“We expect that this index will now remain relatively flat for the rest of the year, since even the December figure, which won’t be published until February next year, will only relate to sales that were agreed before the new Brexit deadline really starts to bite.

“It should therefore end the year where it is now, with average prices up by around 1%.

“However, London and the south-east of England are likely to fall further, since their prices are still looking over-heated when compared with average earnings in those regions, and with prices in the rest of the country.”

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