London property market 'highly exposed' in face of possible no-deal Brexit

House prices in England increased by 0.7% from March to April 2019, according to the latest UK House Price Index.

Houses prices in London decreased by 1.2% annually — the largest fall in England — but rose by 2.4% since March 2019.

Jonathan Samuels, CEO at Octane Capital, said: “Sadly, with a no-deal Brexit now a real possibility once again, the London property market remains highly exposed.

“If Brexit hits hard, it could hit prices in the capital the hardest.

“London, and to a lesser extent the South East, continue to pay for their exuberant growth five or six years ago.”

Meanwhile, the North East witnessed the highest monthly price rise, with house values increasing by 5%.

Lucy Pendleton, founder-director at James Pendleton, added: “Another drop in property prices in London ensures the capital continues to be a bit of an outlier.

“Other regions haven’t followed the capital’s trajectory as quickly as has been the case historically.

“Some comfort can be taken from the fact that, as prices in London fall, buyers are being fairly energetic in stepping up to take the opportunity to get in.”

John Goodall, CEO and co-founder of Landbay, added: “The north-south divide continues to widen as growth stagnates in the South, especially in London.

“The hot topic of the moment is the Conservative leadership race, and it is absolutely crucial that contenders for the top job are considering the housing market while finalising policies and a potential cabinet.

“Both in the run-up to the Brexit deadline and beyond, the government must acknowledge the opportunities and challenges that lie ahead.”

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