Latest Brexit delay = Annual rate of house price growth drop below 1%

Founder and CEO of Yomdel, Andy Soloman, commented:

“A Halloween Brexit is probably quite appropriate as any deal that does materialise will be a Frankenstein’s monster, pieced together from various deals along the way.

In the meantime and given the damage already sustained by the UK market as a result of political uncertainty, this latest extension could bring a further scare to UK homeowners, as the rate of house price growth looks set to remain stagnant until the end of October at least.

We’ve already seen the annual rate of growth fall from upwards of 7% since the vote to just 1.7% currently and with this further delay, there’s a very good chance that this could slip below the 1% threshold.

A smoother exit would certainly be preferable and so if utilised properly, this extension could enable a quick return to form for the UK market in the long-run. In the short-term expect more lethargy across the market, a continued adjustment in asking price expectations, flat levels of transaction growth and erratic movement in sold prices.”