According to a Reuters poll of housing experts, a majority of the respondents believe that the house prices in both the UK and London are likely to take a hit, in the event of a no-deal Brexit outcome.
Key Findings:
“Roughly 85% of respondents said both UK and London house prices would fall in the six months if the UK leaves the EU without a Brexit deal, with average prices slipping about 3% nationally and as much as 10% in London.
But if Britain departs the EU with a transition deal – the scheduled leave date is Oct. 31 – house prices are due a mild 1.5% lift over the following two quarters. They would rise 1.4% in the capital.
Results from the Aug. 13-20 survey show an otherwise tepid outlook for national price rises in coming years.
The survey also indicates in the near-term at least that housing, the bedrock of British household wealth, is not likely to give a lift to the economy, which contracted for the first time in 6-1/2 years in the second quarter.
Average UK house prices are forecast to rise 1.0% this year, 1.8% next and 2.7% in 2021, little changed from 1.2%, 2.0% and 2.5% in a survey taken in May.”
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