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Spring property market bounce ‘peters out’ as Brexit drags on

Latest figures from the Halifax show a second month of weakening house prices as the UK's exit from the EU continues to bite hard into buyer and seller confidence.

Nigel Lewis

brexit

House prices will remain flat until Brexit is sorted out and buyer and seller confidence returns to the market, the latest house price index from the Halifax reveals.

Its report shows prices softening for the second month in a row and that the average house price is £236,120, which is 0.2% lower than a month ago.

Jonathan Hopper, managing director of Garrington Property Finders (left), says: “The Spring bounce is morphing into a Summer slump.

Two consecutive months of falling average prices – modest though the drops were – show how the brief flurry of momentum seen in late Spring has petered out.”

The Managing Director of Halifax, Russell Galley, says the market will continue ‘treading water’ until buyer and seller worries holding the market back are lifted.

“That said, it’s worth remembering that while economic uncertainty continues to weigh on the market, the overall trend actually remains one of comparative stability,” he says.

“In the longer term, there is unlikely to be step change in market activity until buyers and sellers see some form of resolution to the current economic uncertainty.”

Crunch time

Broker Andrew Montlake of Coreco, says: “Equally, with the odds of no-deal shortening by the day, it’s crunch time for UK bricks and mortar. The impact of no-deal brexit on the UK property market is thick in the air.

“The consensus appears to be that the property prices will suffer if we exit the EU without a deal. But if ‘no-deal’ is more a damp squib than end of the world then the property market could rediscover its mojo.”

August 8, 2019

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