UK: Real estate market penalized by Brexit

Home prices recorded their largest monthly decline in November in six years, according to the country’s largest real estate portal. The UK real estate market has lost its beauty. And just recorded, in October, its biggest fall for almost six years. According to Rightmove, the UK’s largest real estate portal, house prices fell an average of 1.7% in one month, following a 1% rise in October. Over one year, the decline reached 0.2%.

Very concretely, this drop translates into a shortfall of more than 5,000 pounds for the owners. This data is based on an analysis of some 123,536 sales prices offered between 7 October and 10 November, before London and Brussels reach an agreement.

Falling prices in London

Because in theory, without these fears, the real estate market should be supported by a very low unemployment rate, wages now sharply rising and loans still cheap.

Prices in London fell by an average of 0.8% in the fourth quarter year on year. They fell in the British capital for the sixth consecutive quarter. According to the latest available official statistics, the average price of a property in central London (“Inner London”) was down 2.9% year on year in October.

Nationwide also notes that the price gap between the north and south of the country tends to narrow, with the largest increases recorded in Yorkshire and the North West, for example. The price of a home in the south, however, remains almost twice as expensive as in the north. The average price of a house or apartment in London, the most expensive area of ​​the country, was 466,988 pounds (517,829 euros) in the fourth quarter of 2018, more than double the national average of 214,178. books.

Regional disparities

However, the market is not so bad. Still according to Rightmove, the number of homes sold last month increased by 1%.

According to these surveys, the largest decline is in Yorkshire and Humber, in the northern kingdom where they fell 2.4% year on year and 1.7% over one month. In the south-east of the country, the decline reached 1.2% over one year.

In London, they fell 2.4% year on year and are at their lowest in six years. But this is an average that masks strong disparities. In the center of the British capital, where prices have always been particularly high, the decline has even reached 7.1%.

On the other hand, if the fall in prices is on the agenda of one month on the other in many regions, at an annual rate the prices remain oriented to the rise.

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