Halifax reports Brexit causing lack of growth in house prices
Halifax, the largest mortgage lender in the UK, forecasts that house price growth will continue to be subdued during Brexit uncertainty.
The report suggests that this effect will be particularly pronounced in London.
Compared to February, house prices dropped by around 1.6 per cent in March of this year. On the other hand, they were 2.6 per cent greater in the first quarter of this year compared to the first quarter of 2018.
The broader analysis shows that, at present, the average cost of a home in the UK is floating at around £233,000.
Both buyers and sellers are not engaging in the market, which Halifax suggests will result in stagnant prices and difficulties for first-time buyers.
The BBC reports Halifax’s managing director, Russell Galley, as saying: “These conflicting challenges, when combined with the ongoing uncertainty around Brexit, have had an impact across the country but most notably in London, meaning that we continue to expect subdued price growth for the time being”
Many in the industry remain concerned that the political difficulties surround Brexit are suffocating action in the housing market. There are also appear to be concerns that this could have unduly long-term implications.
This recent news of Brexit's effect on the market comes against previous hopes that, by March, a conclusive outcome to Brexit would be in sight – something now made more difficult by the recent extension on Article 50. Complicating matters more, prime minister Theresa May has yesterday expressed her hope for an extension of Article 50 until June 30.
More generally, concerns have been raised across many sectors – many can be read in the most recent edition of The Parliamentary Review – that uncertainty, rather than Brexit itself, is causing damage to the UK economy.