As we reach the end of May, the UK property market remains paralyzed by the ongoing Brexit impasse.
The last two months saw a mixed picture on prices. Nationally, values bounced back in April with a monthly rise of 0.4% but then stalled in May, creeping up just 0.1% according to the latest Office for National Statistics figures.
In London, the sense of uncertainty is even more pronounced, with prices falling 1.2% in the capital last month as buyers stay cautious.
The North West has been the strongest performing region of late, with values up an annual 5.6% in May. The North East has also shown some resilience, registering 1.9% growth over the past year despite subdued sales activity.
Here in Essex, we saw the market recover some ground in April but quickly run out of steam again as Brexit indecision drags on. Annual price growth in our region slowed to just 0.6% in May.
Two Brexit deadline extensions since March have kept the entire national market on edge. Until some political certainty emerges, buyers seem set to continue sitting on the sidelines and sales volumes will likely remain depressed.
On the positive side, a competitive mortgage market has seen rates falling, with 5-year fixed deals hitting six-year lows below 2% to improve affordability.
But the property outlook remains highly uncertain. Westminster needs to make a decision soon to lift the Brexit fog that has smothered the housing sector for over a year now. Until then, the limbo seems set to continue, unfortunately!
Let's hope for some clarity and renewed optimism in the coming summer months. It's clear the market is desperate to regain its momentum after this extended period stuck in the Brexit doldrums.
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