November Housing Market Reveals Growth After Brexit Deadline Passes

November Housing Market Reveals Growth After Brexit Deadline Passes

The average UK house price grew in the month of November despite the economic uncertainty that remained due to Brexit. The average house price grew by 0.5% to £215,734 according to the most recent data released by Nationwide building society. While it may seem to be a slight level of growth, it is the largest monthly increase since July 2018 and followed 0.2%growth in October. Annual growth increased by 0.8% and was the largest annual growth since April 2019.

The housing market may have shown growth, but remains weak due to the continued uncertainty of Brexit as well as a weaker global economy.

The general election on 12 December is not expected to have an impact on the housing market. Low interest rates and lower asking prices on new properties coming onto the market are expected to keep hopeful home buyers interested in climbing onto the property ladder.

Robert Gardner, chief economist of Nationwide, remarked, “Past general elections do not appear to have generated volatility in house prices or resulted in a significant change in house price trends. On the whole, prevailing trends have been maintained just before, during and after UK general elections.

“Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home.”

Overall for the year, the average house price is expected to remain at a level of growth. As the previous deadline of 31 October for Brexit kept a cloud of uncertainty hanging over the housing market, caution set in as it approached and the robust attention in the market slowed. However, the resilience shown all year long should keep the market within growth, which is a surprise over what had been expected at the start of the year for 2019.

Remaining opportunities in mortgage lending with low interest rates and aggressive home sellers seeking to make a sale with a buyer is expected to keep the housing market busy enough to keep in a state of growth into the next year.

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