Thursday 10 October 2019 12:01 am

London house prices dip amid Brexit uncertainty

London house prices dipped last month as both sellers and buyers drag their feet until clarity emerges over the UK leaving the EU. 

In total 36 per cent of estate agents in the capital reported a fall in agreed sales and 30 per cent saw a drop in homes coming on to the market last month. 

Read more: New home demand falls as buyers wait for Brexit plan

House prices also fell last month according to 36 per cent of London estate agents, but only five per cent expect prices fall further in the 12 months, according to the latest UK Residential Market Survey by Rics. 

Rics chief economist Simon Rubinsohn said: “There are good reasons for thinking the latest dip in both buyer enquiries and vendor instructions is a knee-jerk response to the endless wrangling about Brexit, as the 31 October deadline approaches.

“However, unless there is a speedy resolution to the ongoing impasse it does seem inevitable that the stand-off between purchasers and sellers will deepen making it harder to complete transactions.

“This will not only be a direct hit on the housing market itself but could have ramifications for the wider economy as the normal spend on furniture, fittings and appliances that typically accompanies a house move is also put on hold.”

Yesterday, research by the Federation of Master Builders found that the demand for new homes had slumped to a six-year low as buyers delay purchasing property until a Brexit plan becomes clear.

Read more: UK house prices grow at slowest rate for six years

Consumer demand for new homes has fallen eight per cent over the last year. 

Small house building firms said current buyer demand is at 2.9 out of 5, down from 3.14 last year, and is expected to fall further to 2.75 next year. Almost half of developers attributed the slump to a lack of consumer confidence driven by Brexit uncertainty.

Main image credit: Getty