Rightmove has revealed that UK house prices have decreased for the first September since 2010 as the usual autumn rebound failed to transpire.
The average price of UK property coming on the market fell by 0.2%, or £730, to £304,770, as the number of agreed sales dropped 5.5%. Underlying housing fundamentals remain strong, yet the October 31st Brexit deadline and the prospect of no-deal have discouraged buyers.
Miles Shipside, Rightmove director, said the approaching deadline was “causing some to hesitate”. If it lasts, the traditional autumn bounce in completions may be “missed altogether”.
Excluding London, the UK housing market has been somewhat resilient since the 2016 referendum. House prices in London have been in decline since March 2018, but that has been explained by a reduced interest from international buyers. Other regions have remained resilient against uncertainty.
The Rightmove figures have indicated that the intensity of no-deal Brexit concerns are impacting the larger market.
Mr Shipside said: “As the deadline gets closer and tensions heighten, there has been a big swing with sales agreed now over 5 per cent below those of a year ago. Buying activity is still at nearly 95 per cent of what it was a year ago, but sellers in all regions are seeing fewer sales go through.”
People selling property are also holding back, but prices continue to fall. The number of newly-marketed properties decreased by 7.8% this month compared with last year, with all regions down on the previous year, Rightmove found.
The most recent Office for National Statistics (ONS) data shows prices increasing 0.9% across Britain in June, but falling by 2.7% in London, continuing a trend since March 2018. Prices in the south-east decreased by 0.6% in the same month.
A total of 53% of homes were taken off the market in the most exclusive boroughs of central London instead of sold in the second quarter of the year, according to Lonres. The figure has risen gradually since 2014, when it ranged between 30 and 40%.
Marcus Dixon, head of research at Lonres, said that changes to stamp duty and the uncertainty surrounding the EU referendum in 2016 had hit the market. He said: “Indeed, since 2016 more properties have been removed from the market due to a withdrawal than a sale.”
Source: Scottish Housing News