Rate of growth to become negative in South West, but North West and Yorkshire will enjoy 4% increase
UK residential asking prices are forecasted to drop in 2019, as the negative price growth seen in some regions will weaken further.
The prediction, by property website Home.co.uk, claims that prices will fall over the coming 12 months by 1% nationally, fuelled by even more declines in Greater London, the South East, and the East of England.
Prices in the capital have already dropped by 2.5% in 2018, and it is expected that they will continue to fall by 3.5% this year as buyers choose to wait for additional reductions and sentiment weakens.
Similarly, Home.co.uk predicts the rates of decline experienced in the South East and East of England will reach 2% and 1.5% respectively by the end of 2019, whilst it also anticipates prices in the South West will slide to a negative rate of 1%.
Meanwhile, the website warns that 2018’s most successful regional markets will see slower rates of growth in the coming year; in the West Midlands, price growth will slow from 5.2% last year to 2%, whilst in the East Midlands growth will flatline at 0% in 2019.
However, the rate of asking price growth will only soften slightly in the North West and Yorkshire, both of which are expected to see prices rise by 4% in the next 12 months.
Meanwhile, the North East’s property market will have another year of stagnant growth, with prices not predicted to by rise by more than 1%.
Concluding their predictions, Home.co.uk’s director, Doug Shepard, said, “Brexit is not to blame. Sure, May's mess is not helping, but the current post-boom hangover was 'baked into the cake' when the Bank of England reduced rates to historic lows back in 2009.”
A similar sentiment was echoed by the National Association of Estate Agents (NAEA), which expects the UK’s property market will experience more challenges over the next 12 months.