The latest report from the Office for National Statistics (ONS) has revealed that UK house prices have declined by 0.3% in November. This is the first decline since April of this year and is being attributed to the ongoing economic uncertainty caused by Brexit.
The ONS report shows that the average house price in November was £231,000, a 0.3% decrease from October. This is the first monthly decline since April and is the largest since February of this year. The ONS also reported that the annual rate of house price growth has slowed to 1.3%, the lowest rate since June 2013.
The decline in house prices is being attributed to the ongoing uncertainty surrounding Brexit. With the UK due to leave the EU in March 2019, many potential buyers are holding off on making a purchase until there is more clarity on what the future holds. This lack of confidence has been reflected in the housing market, with many potential buyers deciding to wait and see what happens before committing to a purchase.
The decline in house prices is also being attributed to other factors such as rising inflation, stagnant wages and a lack of available properties on the market. These factors have all contributed to a decrease in demand for properties, resulting in a drop in house prices.
Despite the decline in November, it is important to remember that house prices are still up 1.3% compared to this time last year. This suggests that the market is still relatively stable and that any decline is likely to be temporary.
It is likely that the housing market will remain uncertain until there is more clarity on Brexit. However, it is important to remember that house prices are still up compared to this time last year and that any decline is likely to be temporary.