UK house price growth will be ‘subdued’ due to Brexit uncertainty

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House Prices:

As a result of the continuing uncertainty that
pervades Brexit, the UK’s biggest mortgage lender, Halifax, has stated that
house prices across the country will continue to be ‘subdued’. The area noted
to be most affected, was London.

House
prices falling

Halifax also revealed that the average house
price had fallen by 1.6% in March, in comparison to the previous month.
Nevertheless, prices haven’t fallen dramatically, as prices still remained 2.6%
higher in the first three months of 2019 compared to the previous year.

The mortgage lender stated that it was
unlikely that house prices were to fall sharply, as there has been a lack of
activity on both the buyers and sellers side. However, it is anticipated that
prices will remain subdued as a result of the uncertainty regarding Brexit, for
at least the next coming months and with a 6-month extension recently granted.

Tomer Aboody, director of property lender MT Finance, also reiterated that the price growth was going to continue to slow down, stating: “For the past couple of years March was flagged up as the date when we would get Brexit [but] people have been too busy watching the political shenanigans on television to go out and view houses.

“The Brexit saga is such a debacle and until it gets sorted, one
way or another, few people are going to do anything.”

Uncertainty for tenants and
landlords

The media has also focused this week on the uncertainty surrounding EU
residents who are renting or looking to rent in the UK. The Right to Rent
Scheme assures that landlords only rent to legal immigrants or face fines of up
to £5,000, meaning that EU residents must re-confirm their residential status
provided that Britain leave the EU.

The Settled Status Scheme is designed to assist with this, but the rules surrounding the requirements of current EU citizens living in the UK has been very vague, and many are asking for clearer guidelines.

One area of concern is that landlords will be more hesitant towards
renting out their properties to EU tenants – and this poses challenges for EU
nationals who might feel excluded or wedged out. There is talk about the
government launching a marketing campaign which excludes how EU nationals can
legally continue living in the UK and how to go through the legal process,
without impacting their day-to-day lives.

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