London house prices 2019: stalled property market among signs no-deal Brexit fears have cause 'enormous damage' to economy

House prices have ground to a halt across the country amid looming signs that the prospect of a chaotic no-deal Brexit is already wreaking “enormous damage” on the economy.

The average cost of a home this month was just 0.1 per cent higher than a year ago, the slowest annual rate of growth for six years, according to latest figures from the Nationwide building society.

Robert Gardner, Nationwide’s chief economist, said: “It is likely that the recent slowdown is attributable to the impact of the uncertain economic outlook on buyer sentiment, given that it has occurred against a backdrop of solid employment growth, stronger wage growth, and low borrowing costs.”

Buyers have been holding back from making offers on homes during the turbulent run-in to the March 29 Brexit date, particularly in London and the south east.

Howard Archer, chief economic adviser to forecasters the EY ITEM Club, said: “If the UK leaves the EU at the end of March without an approved Brexit deal, house prices could fall by around 5 per cent in 2019.”

It also emerged today that the near paralysis in the London property market has savaged the bottom line at its biggest chain of estate agents, Foxtons, which warned that profits from last year would be down 80 per cent to £3 million.

The Nationwide figures came amid a flurry of evidence that the real economy is increasingly being hit by the massive uncertainty surrounding Britain’s imminent split from Brussels.

In the starkest warning, Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: “With fewer than 60 days before we leave the EU and the risk of crashing out without a deal looking increasingly real, UK Automotive is on red alert.

"Brexit uncertainty has already done enormous damage to output, investment and jobs.”

There was also gloomy news from the City with Barclays confirming that it is ready to move €190bn (£166bn) worth of assets from the UK to Ireland in preparation for a possible no-deal Brexit.