House sales suffer due to Brexit

Britain’s Housing Market Could Remain Under Strain At Least Till 2021: Reuters Poll

Posted Wednesday, November 20, 2019 by
Arslan Butt • 1 min read

A recent Reuters poll estimates annual house price growth in Britain to come in weaker than growth in the already weak inflation, at least until 2021. House prices in London are expected to decline as a result of the rising uncertainties surrounding Brexit, which are keeping buyers wary of making big purchases.

Brexit uncertainties are likely to dominate the sentiment in Britain’s markets even after Britain leaves the EU on January 31, 2020 as per the revised deadline for the departure. The spotlight will then fall on trade deals that Britain will have to finalize with nations worldwide following its departure from the EU, and until this happens, economic growth is not expected to pick up considerably in Britain.

According to economists, house prices in London are expected to decline by 1.5% while they could stabilize into 2020. Economists anticipate annual house price growth to range anywhere between 0% and 3% in 2019 while in 2020, home prices could rise by 2-5%.

Across Britain, house prices are expected to rise by 1% in 2019, 1.5% in 2020 while annual growth could climb higher to 2.3% by 2021. Even after a Brexit deal gets finalized, it could take some time for its effects to be felt in the housing market as the economy has to stabilize first after the transition for things to settle down.

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