House prices

Brexit has had 'limited' impact on house price growth



The impact of Brexit on the housing market has so far been limited, according to new research.

The latest Hometrack UK cities house price index revealed that annual house price growth in the UKs top 20 cities currently stood at 3.2%, with growth ranging from +7.7% in Leicester to -2.8% in Aberdeen.

Six cities have seen annual growth of 6% or more: Leicester (7.7%), Edinburgh (7.4%), Manchester (6.3%), Birmingham (6.2%), Nottingham (6.1%) and Liverpool (6%).

In London, average house prices have fallen by 0.4%.

Over the last 12 months, the rate of growth has slowed the most in cities across southern England.

“Two and a half years on from the Brexit vote, our analysis reveals a limited direct impact from Brexit uncertainty on the housing market thus far,” said Richard Donnell, insight director at Hometrack.

“Large regional cities continue to register above average house price inflation with the discount between asking and sales prices narrowing on rising sales volumes.

“London led the housing recovery since 2009 and now it is leading the slowdown as weaker market fundamentals – stretched affordability, multiple tax changes, new mortgage regulation – have constrained demand and reduced sales.

“While the uncertainty from the Brexit vote has compounded this reduction in London house price growth it hasn’t been the root cause.”

 


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