Nationwide’s latest House Price Index (released this morning) has revealed that the average UK house price has increased by a modest 0.2% in October.
Jamie Johnson, CEO of FJP Investment said: “Today’s house price index demonstrates that despite Brexit uncertainty, demand for real estate remains. Yes, the rate of house price growth has slowed down, but the fact that prices are rising at a time when the government is amidst a political crisis should not be overlooked. The question now is whether this upturn is a sign of things to come.
“The property market faces some challenging months ahead, made more complicated by the fact that Brexit has been delayed until 31st January 2020. Yet despite the uncertainty, it is important to remember the bigger picture. Whilst it is natural in times of uncertainty for property prices to fluctuate, bricks and mortar has remained, for the most part, resilient. Figures from the Office of National Statistics, for instance, show that the average UK house price has risen from £214,000 in June 2016, to £228,000 in January 2019 – impressive growth for any asset.
“The property market has weathered many storms before, including the global financial crisis, snap general elections and high-profile political resignations, and there is no reason to believe this won’t be the case in the months leading up to Brexit.”
Paresh Raja, CEO of Market Financial Solutions added: “House price growth remains at a low 0.2%, and this will have many property commentators worried.
“We shouldn’t let these monthly figures distract us from the bigger picture. In real terms, house prices have risen since the EU referendum vote, which is an impressive feat given the performance of other assets that have struggled as a consequence of Brexit uncertainty.
“And let’s not forget that for the majority of October, the UK was assuming that Brexit would be happening at the end of the month. Yes, this has now been delayed, but these latest figures nonetheless show that even when Brexit looked to be a mere few weeks away, house prices were not drastically fluctuating.
Buyers and sellers are no doubt suffering from Brexit-fatigue, and this marginal increase/decrease will no doubt be replicated over the coming months as we wait for Brexit to be resolved. Once certainty returns to the market, I’d expect to see a boost in transactions as buyers and sellers are able to effectively plan for the future without Brexit uncertainty hanging over them.”