Sat, 1st Dec 2018
House prices in the UK have fallen by £5,000 on average, with the value of property in the south declining the most. The fall is the biggest drop in house prices since 2012, and areas where property prices were at the highest have been hit the hardest.
Some of Britains most wealthy towns have been hit by the downturn, as Brexit uncertainty is making people reluctant to settle in former hotspots. The average price of property has fallen by 1.7 percent, or £5,222, this month alone. Prices in London fell by an average of £10,793, while prices in the south east of England were down by £8,647. Up until recently, as prices in London were rising, so too did prices outside the capital. Now the ripple effect has reversed and declines in London are spreading north.
Property builders will be particularly badly affected. The average asking price for a home in the UK has fallen, albeit only slightly for new listings. Sellers are listing their properties and finding that they are getting much less interest in viewings, and also that it is taking longer for properties to sell. According to data collected by Rightmove, it now takes 61 days for a typical property to sell, compared to just 56 days last year.
Brexit negotiations are looking uncertain and unstable at the moment, and analysts do not expect to see a recovery in the housing market before Christmas, but the longer term outlook for the market remains positive.