House prices in Brexit slump: nearly £7,000 knocked off price of average UK home as uncertainty continues
The average price of a home across the country slumped 2.9 per cent to £223,691 in January wiping almost £7,000 of its value, according to latest figures from mortgage lender Halifax. The fall brought the annual rate of house price inflation down to just 0.8 per cent.
Halifax managing director Russell Galley, said: “There’s no doubt that the next year will be important for the housing market with much of the immediate focus on what impact Brexit may have.
“However, more fundamentally it is key underlying factors of supply and demand that will ultimately shape the market.”
But property experts said the alarming scale of the fall pointed to “grim conditions” in a market that has virtually ground to a halt amid the chaos of the Brexit negotiations.
Jonathan Hopper, managing director of buying agents Garrington Property Finders, said: “The irony is the UK’s economic fundamentals remain solid: a higher proportion of Britons than ever are in work, average wages are rising at a decent clip and mortgages are cheap.
“But the confidence-sapping uncertainty of Brexit it getting worse, not better, and the next few months will be decisive. Barring an improbable Brexit solution that magically avoids both economic and political turmoil, a return to universally rising prices appears unlikely any time soon.
Jonathan Samuels, chief executive of property lender, Octane Capital, said: “It’s buckle up the seat belts time for UK bricks and mortar. Faced with unprecedented political and economic uncertainty, the property market is grinding to a halt.
North London estate agent Jeremy Leaf said: “What we are seeing on the ground is the release of some pent-up demand prompting more listings, viewings and offers over the past few weeks than we dared hope for.
"However, interest is very patchy and real value must be perceived, otherwise little market change will result.
“Looking forward, we do not expect any significant improvement at least until the odds on a Brexit deal improve.”