UK market riding out Brexit fearsOverseas Property | Jonathan Cable 23 May 2019
Britain's expensive housing market has so far weathered the uncertainty swirling around the country's planned departure from the European Union, but prices are unlikely to rise sharply and will fall in London this year, a poll found.
With no resolution in sight, Brexit uncertainty has affected property prices in the capital - long a magnet for foreign speculators - as people have shied away from investing, despite a fall in sterling since the referendum making UK housing a relatively cheaper investment.
Real estate agent Foxtons said UK property sales were running at record lows due to the impact of Brexit on consumer confidence.
According to the May 10 to 21 poll, prices will drop 2.0 percent in London this year, the same median forecast given in a February survey.
But that might not be a bad thing for buyers.
When asked to describe the level of London house prices on a scale of 1 to 10, the median response was 8.5, higher than in previous surveys.
"It's the same old story - housing is cheap for those with some capital, given low funding costs, but very expensive in terms of the income multiple," said Peter Dixon at Commerzbank.
The average annual British salary is about 30,000 (HK$298,225) and yet the average asking price for a home in Britain was 308,290 this month, and more than double that in London, property website Rightmove said.
Home values will gain 1.2 percent nationally this year, 2 percent next year and 2.5 percent in 2021, the poll of 23 housing market watchers said.
"The UK market has remained resilient," said Russell Quirk at Vyomm.com. "So, just imagine the enormity of the 'happy ending' that will prevail when the current political paralysis ends."