UK House Prices Fall Amid No-Deal Brexit Fears

House prices in Britain unexpectedly fell last month amid mounting fears over the impact of no-deal Brexit on the property market. According to the latest snapshot from the Nationwide building society, prices fell in September by 0.2%, pulling down the average price of a home to £215,352 from £216,096 in August. Economists polled by Reuters had forecast a 0.1% rise on the month. With just 30 days until Britain’s scheduled departure date from the EU with little sign of a breakthrough in the deadlock with Brussels, analysts said property buyers and sellers were delaying their decisions amid the uncertainty. Read more on the Guardian website.

https://www.theguardian.com/business/2019/oct/01/uk-house-pricesno-deal-brexit-nationwide-london

House Prices Could Nosedive After No-Deal Brexit

UK house prices could crash by as much as a fifth if Boris Johnson pursues a no-deal Brexit, and the biggest falls would be in London and Northern Ireland. Reflecting the potentially vulnerable state of the property market as Brexit looms, KPMG said house prices would fall by between 5.4% and 7.5% across different regions next year if a new agreement with Brussels was not in place by 31 October. The analysis of average house prices across the country showed no deal could trigger a nationwide decline of about 6% in 2020 and that and a drop of between 10 and 20% was “not out of the question” if the market reacted more strongly than expected. Read more on the Guardian website.

https://www.theguardian.com/money/2019/sep/02/house-prices-could-nosedive-after-no-deal-brexit-says-kpmg

House Prices Would Flounder In Six Months After No-Deal Brexit

Britain’s drifting property market would probably take a hit from a disorderly Brexit, with average prices slipping about 3% nationally in the ensuing six months and as much as 10% in London, a Reuters poll of housing experts found. Roughly 85% of respondents said both UK and London house prices would fall in the six months subsequent to leaving the European Union without an agreement. 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. Read more on the Reuters website.

https://uk.reuters.com/article/uk-britain-property-poll/house-prices-would-flounder-in-six-months-after-no-deal-brexit-reuters-poll-idUKKCN1VB03U

Social House Building Programme Could Stave Off Economic Downturn

A national programme of social house building could help stave off the economic downturn brought about by a No Deal Brexit, a survey says. The Federation of Master Builders surveyed construction SMEs on the top five interventions the new PM could make should the UK crash out of the EU. A quarter of respondents opted for embarking on a national programme of social house building. Read more on 24housing.

https://www.24housing.co.uk/news/social-house-building-programme-could-stave-off-economic-downturn/

Removing Brexit Uncertainty Won’t Resolve Housing Market Issues

The BSA’s quarterly Property Tracker survey reveals that house prices are of greater importance than Brexit when it comes to housing market sentiment. Respondents who disagreed that ‘now is a good time to buy’ were asked what would change their mind: over a third (34%) said a correction in house prices. Comparatively, 27% said ‘the UK reaching an agreement with the EU’ would make them more positive, and just 11% said a ‘no deal’ scenario would make them more positive. Read more on the Politics Home website.

https://www.politicshome.com/news/uk/economy/economic-growth/opinion/building-societies-association/104524/removing-brexit

Brokenshire Assures Over Impact Of No Deal On Housing Market

A no deal Brexit would still see EU product requirements recognised as valid for sale on the UK housing market for a time-limited period, James Brokenshire has confirmed. Brokenshire was responding to his shadow John Healey, who put a Parliamentary question on the extent of adequacy support for the market in the event of no deal. Responding, Brokenshire referenced already implemented legislation intended to mean that, from the first day of exit, the UK’s regulatory requirements on construction products will be the same as the EU’s requirements. Read more on 24housing.

https://www.24housing.co.uk/news/brokenshire-assurance-over-no-deal-impact-on-housing-market/

Brokenshire On The Spot Over ‘No Deal’ Housebuilding

On the spot over the future for low-cost housing post-Brexit, James Brokenshire turned his fire on – the last Labour government. At MHCLG questions in the Commons this afternoon (March 4), Healey called on Brokenshire to commit to £4bn for new low cost homes next year in the event of a No Deal Brexit. Healey had teased Brokenshire in asking how many fewer homes might be built in the event of No Deal, referencing the Bank of England assessment of a 30% plunge in house prices – double the fall after the global financial crash. Brokenshire did not directly address Healey’s call for commitment. Read more on 24housing.

https://www.24housing.co.uk/news/brokenshire-on-the-spot-over-no-deal-housebuilding/

Regulator Writes To Housing Associations With No-Deal Brexit Warning

The regulator has issued a warning to English housing associations over the threat of a no-deal Brexit, outlining key risk areas including shortages of crucial materials, a housing market crash and difficulties accessing ‘business-critical’ data. In a letter sent to the bosses of English housing associations, Fiona MacGregor, chief executive at the Regulator of Social Housing, urged associations to ensure their plans for dealing with a “disorderly Brexit” are robust, as the departure date of 29 March approaches. Read the letter on the GovUK website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/778642/RSH_letter_-_Preparation_for_a_no-deal_Brexit_-_February_2019.pdf  

Survey Shows PRS Ready To Defy ‘Armageddon’

Almost two million landlords will increase portfolios next year, defying claims the private rented sector faces “armageddon”. According to the study by investor forum and advice website The Property Hub, the vast majority of landlords will buy at least one more property in 2019. And 70% say even a no-deal Brexit would be unlikely to affect their growth plans. Read more on 24housing.

https://www.24housing.co.uk/news/survey-shows-prs-ready-to-defy-armageddon/

Homebuilding Plans Under Threat From ‘No Deal’ Brexit

The potential impact of a no-deal Brexit on homebuilding with a warning of up up to 43,000 fewer construction jobs in the UK, according to new research commissioned by the Mayor of London. In London alone there could be 5,000 fewer jobs in the construction sector under a no deal Brexit, with the capital’s construction sector output potentially falling by £1.2bn up to 2030 when Britain leaves the European Union in April next year. The findings are contained within analysis of the potential impact of five different Brexit scenarios on London and the whole of the UK commissioned by the Mayor last year from leading economic analysts, Cambridge Econometrics. Download the report from the Cambridge Econometrics website.