At the center of the UK housing market is the capital city of London and a place where property values have been on a robust trajectory for the last decade. Recent figures have now surfaced which reflect a cooling period and turbulent waters for the last two years. Now, Brexit uncertainty and stamp duty laws have taken their toll on the prices which have been headed north for as long as we remember. House prices fell in October which brought down the national average of property value to the lowest point in five years.

House prices in London have been skyrocketing for years. The cool down period for prices is now being highlighted as demand has fallen and many have chosen to move home and relocate to areas just outside the capital city.

The average for property in the UK now sits at £248,000.

Mortgage lending has been led by remortgage in the last twelve months and that trend will likely continue. Lending overall is expected to remain subdued until after Brexit.

In the latest meeting of the Bank of England Monetary Policy Committee on Thursday interest rates were discussed as usual. Analysts believe the result of the discussion was a delay in raising rates until at least the middle of next year. The delay would then fall months after the official Brexit date of March 29.

Howard Archer, chief economic adviser to the EY Item Club, commented on the current climate within the UK housing market, saying: “The fundamentals for house buyers currently remain challenging. Consumers have faced an extended serious squeeze on purchasing power, which is only gradually easing.”

Archer added: “Additionally, housing market activity remains hampered by relatively fragile consumer confidence and limited willingness to engage in major transactions.”