Brexit Hits UK Property Prices

The latest asking price index from Home.co.uk has revealed that the Brexit vote has hit UK property prices.

Asking prices have seen a fall in Scotland, London and four English regions, with the UK’s decision to leave the European Union being cited as the main reason for the change to a 19 month long rise in values.

Overall, mix-adjusted average asking prices fell by 0.2% from June as sellers’ confidence was hit by the Brexit vote, according to the latest study.

Prices in London were already looking like the most overvalued properties and have now been hit the hardest with a 1.1% fall in just one month, which is equal to around £6,000 less for the average home in the capital.

The index also revealed that the South East’s average asking price fell by 0.2% in the last month; however the largest drop away from London was in the North East which saw a fall of 0.7%.

The index report states that the fall in this region is a major blow to an area that was beginning to show signs of a recovery following the 2007 financial crisis.

However, a number of regions in England and Wales are still witnessing a rise in asking prices, while the East Midlands saw the largest growth over the last month, with an increase of 0.7%, followed by the North West which was up 0.4%. Other areas where average property prices rose are: Yorkshire (up 0.3%), the West Midlands (up 0.2%) and the East of England (up 0.1%).

Home.co.uk Director, Doug Shephard said: “As the Brexit vote is only about two weeks old, we may well see these figures turn negative next month. Whilst the key drivers of lack of supply and cheap credit remain, uncertainty brought about by the Brexit vote is undermining the property market.”