With the political uncertainly the UK has been facing recently, it’s no wonder that the year ahead is predicted to be a subdued one for growth within the property market.
According to Zoopla, house prices are expected on average to remain flat across the UK, but there will still be significant regional differences. Many experts are predicting further price falls again in London and the south, with regions in the north more likely to increase.
London
The UK House Price Index published by gov.uk compares the average price by property type in London in February 2018 to February 2019. An annual price drop of 3.8% decreases the average London property value by £18,000.
Factors affecting this downturn include uncertainty over how the UK will leave the EU, stretched affordability, the prospect of higher interest rates and a continued shortage of homes for sale.
The South of England
We can see the slowdown in London already trickling down to southern regions and this is expected to continue in 2019.
Zoopla have reported that the previous buoyant house price growth seen in the east of England, means that affordability pressures have now come to a head and prices are likely to drop by 2% in the east, 1% in the south east and 0.5% in the south west. The prime commuter spots in the east and southeast will be hit the hardest, with less housing wealth leaving London and the average house sale in London now taking a year to complete. Properties in the south west see less of a price drop, having the benefit of demand for retirement properties and holiday homes in this area.
The Midlands
The East and West Midlands are less impacted by the dynamics of the London market and these areas saw some of the strongest house price growth in 2018. Despite this, a price drop in the market is still expected of between 0.5% in the west, to 1% in the east.
The North of England
In contrast the north of England is expected to see some buoyancy in 2019. The highest rise is predicted to be 1% in the north east, with property in Yorkshire & Humberside rising by 0.5% and the north west of England remaining flat.