According to data released today by Nationwide, UK house prices fell by 0.7 per cent from November 2018, the biggest monthly drop since July 2012.
Compared with the same month a year earlier, prices rose by just 0.5 per cent in December, as opposed to a 1.9 per cent rise recorded in November. Indicators of housing marketing activity, such as the number of property sales and mortgage approvals, were however broadly stable in the last few months of 2018.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, says: “Measures of consumer confidence weakened in December and surveyors reported a further fall in new buyer enquiries towards the end of the year. While the number of properties coming onto the market also slowed, this doesn’t appear to have been enough to prevent a modest shift in the balance of demand and supply in favour of buyers.”
Britain’s housing market has weakened considerably since the June 2016 vote to leave the European Union. This has been led by extensive housing price falls across London. According to the Bank of England Governor, Mark Carney, a “disorderly” Brexit could lead to a 30 per cent slump in house prices as a knock-on effect of a broader economic shock.
If you have any concerns relating to your property portfolio, or would like professional advice on how best to structure your property deals, both to ring-fence and protect your property assets, as well as to minimise the tax arising from your business operations, we are available to assist. Our property experts at Beavis Morgan offer extensive experience in advising individuals and businesses on all aspects of the property market.
Contact Steve Govey or your usual Beavis Morgan Partner for more information.