Upcoming General Election and Brexit likely to have only a marginal impact on property values
Property prices will get off to a slow start next year, with comparison website reallymoving predicting a slight decline in the next three months.
According to their analysis, which covers conveyancing requests based on sales agreed data for September to November, average prices across England & Wales will fall by 2.1% between December and February.
They forecast that prices will go down by 1.1% this month, then flatline at 0% in January, before falling by a further 1.1% in February, whilst two regions will see prices increase during this period; the East of England (+3.1%) and the North East (+0.3%).
However, their projections say property prices will still remain above the same period last year, predicting prices to be 2.6% higher in December, 2.2% in January, and 4.5% in February.
Reallymoving suggests that the results from tomorrow’s General Election and the UK’s departure from the EU will not have a significant impact on property values, although their analysis does predict a 3% drop in prices across London.
Rob Houghton, Chief Executive of the website, said:
“Transaction volumes remain down by around 12–15% currently, but if the Conservatives win the General Election as the polls suggest and manage to secure the UK’s withdrawal from the EU at the end of January, a rise in demand from these buyers could prompt a rapid bounce in prices as the uncertainty surrounding Brexit is resolved.”
Halifax’s latest house price index reveals property values increased by 1.0% between October and November.