The last few months of 2018 saw the average UK property value fall. Many are sceptical, and believe this is simply a temporary drop, however others think it could be a more serious decline.
This unknown is seeping into 2019, with homeowners checking their property valuations, and potential buyers are confused whether to bite or wait.
Autumn slip in 2018
Which? Magazine said “there’s no crystal ball that can predict how house prices will move” but that it did research four major estate agents and house prices began to dip as the year ended, hinting that housing prices may be on the decline.
In August 2018, for example, house prices were averaging at £232,917, but by October it had fallen by almost £1,000 to £231,915. By November, it had fallen to £230,630 – a 0.1% decrease from October, which in turn was 0.4% down on September, which was 0.3% down on August. Despite this, the annual growth rate in November was 2.8%.
The Royal Institution of Chartered Surveyors (RICS) has said that with rapid month on month declines, on the back of Brexit, the forecast for 2019 is largely flat with not much movement on house prices expected.
Estate agents and banks continue to forecast growth in 2019 despite Brexit
However, many experts believe that housing prices will grow, but at a slow pace, with high street estate agent Savills reported to be predicting a rise of 1.5% across the year, and the Halifax bank forecasting a house price increase between 2-4%.
The West Midlands, in fact, is one place that could continue to see growth. The region posted a 4.6% annual house price rise in November, the strongest in the country, although prices fell 0.4% on the month, to £197,387. Greater London, by contrast, was the only region in the country with a 0.7% annual drop.
The threat of Brexit will keep property experts and banks on edge in terms of house prices, particularly as the threat of leaving the European Union without a deal, nor clarity on any deal with the institution at the moment, continues to pile pressure onto businesses and the economy at large.
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