Property prices in the UK refuse to bow to Brexit uncertainty

Property prices in the UK refuse to bow to Brexit uncertainty [Photo: CharlieAJA via iStock]

Five months after the decision was made to leave the EU by the British electorate, it has been revealed that the UK property market is still coping very well with the uncertainty around this, as a new report shows that house prices rose once again last month. 

According to data released this week by the Halifax, in November, property prices averaged at £218,002. This means that prices paid were some 0.2 per cent higher than in October, which marked the third month in a row that house prices have climbed on a monthly basis. 

Annually, prices have also been steadily heading upwards, and the Halifax data shows that in November, prices recorded were as much as six per cent higher than they were just a year ago. Although this is lower than the double-digit growth that was in evidence as recently as March, it does show resilience and a steady market. 

Martin Ellis, Halifax housing economist said that this is largely not due to Brexit, but other factors that have come into play over the last few months. Things such as heightened affordability pressures thanks to continued house price growth in excess of wage rises has meant that demand has fallen a little from the levels it was at, bringing price rises down slightly. 

However, one expert said that the way house prices have continued to stay resilient throughout periods of economic and political worries has meant that the market has proved itself to have that underlying strength. 

"Low borrowing rates, a shortage of properties for sale and the longer term paucity of housing supply across the UK are underpinning prices, proof that the residential property market is able to withstand difficult political and economic conditions," said Rob Weaver, director of investments at property crowdfunding platform Property Partner.