Brexit is affecting all sectors of the United Kingdom. And the real-estate market It is no exception. During the last 16 months the prices of housing in London have been fixed or falling. Period that, as Independent indicates, "is longer than during the recession that followed the financial crisis of 2008."
The official figures show that the prices of homes in the capital have fallen 2.7% during this year until the month of June. In this way, the average value of London properties is 467,000 pounds. On the other hand, as noted by the Office of National Statistics, "throughout the United Kingdom prices increased 0.9%, at 230,000 pounds, the same annual change recorded in May. ”
Hammersmith and Fulham, the districts with the most housing drop in London
The biggest falls, because of Brexit, occurred in the districts of Hammersmith and Fulham. In them, prices fell 11.4%. In Barking & Dagenham are 11% higher. The 2.7% decline was a slight slowdown from the 3.1% recorded in May. Agents said there were few immediate signs of a rebound in a market still dominated by the "fog" of Brexit.
The economic advisor of the EY Item Club, Howard Archer, noted that “the prices of the properties have been backed by avoiding a Brexit without agreement in March. However, support seems to have been relatively limited and probably has now come to an end. ” He also commented that, since Brexit will take place on October 31 and it’s still unclear what will happen then, “we believe that uncertainty will weigh in the economy over the next few months and will hinder the real estate market. The consumers they can be particularly cautious when committing to buy a house. Especially, because housing prices are expensive in relation to income. ”