According to predictions released by Halifax, there will be a significant rise in property prices in the UK in 2019. On average, properties are expected to cost between 2% and 4% more, although Brexit’s outcome will have an influence.
Despite the 1.2% fall in November last year, the UK housing market has ended 2018 positively with house prices going up more 2% in the last moth of the year.
Many people are now asking if they should put their properties on the market this Spring?
If we look at the annual data, the house prices have increased by 1.3% between October and December more than in November when the annual growth rate was only 0.3%.
Halifax experts have found out that the average house price in the UK in the last three months of 2018 was almost £5,000 higher than in December when the figure was £225,995.
The managing director of Halifax- Russell Galley believes that even though the growth is stronger than in the last year, it still feels passive. Mr. Galley also clarified that ‘“This expectation will clearly be dependent on the Brexit outcome, with risks to both sides of our forecast.”
There will be other factors which will have an impact on the market situation in 2019; such as the need for larger deposits for those looking to purchase a property.
According to Mr. Galley, “This year, mortgage payment affordability is more difficult to predict. There are competing pressures with signs of positive annual pay growth supporting affordability, but risks associated with the potential for higher interest rates are pulling in the other direction. On balance we do not see affordability pushing house price growth significantly in either direction.
“The shortage of homes for sale and continuing low levels of housebuilding both constrain the supply of houses, and in turn support high prices, which will continue to inhibit demand in 2019.”
However, the Halifax findings are in contrast with Nationwide reports.
According to the Nationwide, the house prices dropped by less than 1% between November and December and the average price was calculated to £212,281.
The Prime Minister is trying to negotiate the draft Brexit deal with the EU leaders currently, which is causing a lot of uncertainty and anxiety in the market.
In addition to, Mark Carney, the Bank of England governor, has advised that in the worst-case scenario if there is no-deal, the whole situation can lead to an economic crash and more than 20% fall in house prices.
According to the Moneywise ‘’UK house prices are expected to flatline in 2019 as stretched affordability and Brexit uncertainty continue to dampen the market.’’