UK house price growth will continue to be “subdued” during Brexit uncertainty – particularly in London, according to the Halifax.
The UK’s biggest mortgage lender said that property prices had fallen by 1.6% in March compared with the previous month.
However, prices were 3.2% higher in the first three months of the year compared with the same period in 2018.
It said the price of the average home was £233,181.
A lack of activity from both buyers and sellers meant that prices were unlikely to fall sharply, the Halifax said. However, this meant it was still difficult for many potential first-time buyers to raise a deposit.
“These conflicting challenges, when combined with the ongoing uncertainty around Brexit, have had an impact across the country but most notably in London, meaning that we continue to expect subdued price growth for the time being,” said Russell Galley, managing director of the Halifax.
Tomer Aboody, director of property lender MT Finance, said: “For the past couple of years March was flagged up as the date when we would get Brexit [but] people have been too busy watching the political shenanigans on television to go out and view houses.
“The Brexit saga is such a debacle and until it gets sorted, one way or another, few people are going to do anything.”
A week ago, rival lender the Nationwide said that UK house price in March were up 0.7% compared with the same month a year earlier, although property values in England had fallen over the same period.
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You have a big enough deposit and your monthly payments are high enough. The prices are based on the local market. If there are 100 properties of the right size in an area and they are placed in price order with the cheapest first, the “low-end” of the market will be the 25th property, “mid-priced” is the 50th and “high-end” will be the 75th.
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