As the 31st October approaches and brings with it the dreaded Brexit deadline, no matter where you fall on this political issue, there is one thing that everyone can agree on, the housing market has been one of the many victims caused by the uncertainty surrounding Brexit.
An issue so large that it has caused countless protests, a change in prime ministers, and even a prorogued Parliament, it’s no surprise that whichever newspaper you look to, the headlines are focusing on how Brexit has affected, and continues to affect, the UK housing market. Rather than focusing on these attention grabbing columns, it’s time to take a look at the latest facts and figures though. Once you get down to it, it becomes clear that maybe the political uncertainty hasn’t hit the housing market as badly as many have feared, as the national market continues to grow, and companies continue to invest in new UK property developments.
London slum skewing the overall picture
There is not denying that the continued political uncertainty has affected the UK housing market, but it needs to be noted that the current national overview of the housing market has at least partially been skewed by the fact that house prices in the capital are currently falling. According to ONS data released earlier this year the London housing market has succumbed to a 4.4% year-on-year fall in housing prices, the largest drop recorded in the local market since 2009, when it was still recovering from the financial crisis. Rightmove’s month on month price index isn’t showing any sign of this fall recovering any time soon either, with a 2.2% drop in September’s price index from August. So, despite the fact that that the UK market is still growing, albeit sluggishly, the sharp drop in London has no doubt painted a picture far worse than it actually is in reality.
A slow market but still growing
As we have already briefly touched upon, the current housing market is definitely growing much more slowly than predicted, due to lack of foreign investment and domestic sellers and buyers lacking confidence as the result of the current Brexit situation. As figures from ONS show, the national housing market saw a yearly growth of only 0.7% which is a disappointing rate to say the least in comparison to the years before Brexit became a key issue.
As with any national figures, it is worth taking this with a pinch of salt though as growth rates have varied in different regions with certain areas experiencing higher growth rates, and others falling victim to a sharp fall in selling prices.
Of course, if you are a buyer, you may be looking at this with a far more positive approach than someone who is looking to sell their property. Looking at the UK property market as it currently stands, it is currently prime time for buyers, so if you can put aside any reservations of making a large purchase in what some are deeming uncertain economic times, you may be able to snap up a property for a bargain price!