Brexit and the UK Property Market: The Facts

4)

The previously mentioned MFS study also revealed that 18% of investors will consider investing in at least one property over the next 12 months. This strong demand for buy to let property can be seen across the country as the number of renters continues to rise.

5)

In December 2018, asking prices in London fell by £11,275 to an average of £602,996. London’s property market remains stagnant, while Brexit uncertainty looms, according to the Evening Standard. Though property prices in London are still the highest in the country, a yearly price fall of over £10,000 has set alarm bells ringing. This is causing a dramatic fall in the number of properties available to buy. These price falls have been brewing for a number of years, before the UK EU referendum was even certain. Asking prices in the capital have fallen in seven out of 12 months compared to 2017, exacerbating the Brexit effect.

8)

Property markets in cities across the UK have shown sustained growth. Regardless of the Brexit deal struck, there are six UK cities with an annual average house price growth of 6 per cent or more in the latest October figures. The cities that have shown such impressive growth are Leicester (7.7 per cent), Edinburgh (7.4 per cent), Manchester (6.3 per cent), Birmingham (6.2 per cent), Nottingham (6.1 per cent) and Liverpool (6 per cent). These cities, mainly in the North and Midlands, have continued to thrive, regardless of Brexit. It seems that property in these areas still has great potential for capital appreciation. Annual growth in property values in the North West stood at 5.6% by July and the region as a whole is growing regardless of Brexit uncertainty.

11)

Since the EU referendum, house prices have fallen in just one out of 20 UK cities monitored by the Hometrack Cities House Price Index. The rest of the cities mentioned have still registered price rises. The index suggests there has been “no immediate deterioration” in property prices or market activity following the Brexit decision.

12)

Total house sales for the year are expected to be about 3% down on 2017, with a little under 1.2 million homes sold. The slowdown in market activity has again been attributed to Brexit. Many people are waiting to sell their home until they know how the UK will exit the European Union.

For more information on property prices after Brexit and the UK property market as a whole, take a look at our investor guides.