House prices in Britain unexpectedly fell last month amid mounting fears over the impact of no-deal Brexit on the property market.
According to the latest snapshot from the Nationwide building society, prices fell in September by 0.2%, pulling down the average price of a home to £215,352 from £216,096 in August. Economists polled by Reuters had forecast a 0.1% rise on the month.
With just 30 days until Britain’s scheduled departure date from the EU with little sign of a breakthrough in the deadlock with Brussels, analysts said property buyers and sellers were delaying their decisions amid the uncertainty.
Howard Archer, the chief economic adviser to the EY Item Club, said: “With the economy largely struggling and the outlook highly uncertain, we suspect that house prices will remain soft in the near term at least.”
According to the Nationwide house price index, prices fell most in London and the south-east, sliding at an annual rate of 1.7% in the capital to drag down the national average.
The price of an average home elsewhere around the country is still rising, albeit at a slower pace against the backdrop of heightened political turmoil over Brexit. House prices rose most in Northern Ireland, at 3.4% on the year.
Annual house price growth across the country slid from 0.6% in August to 0.2% last month, the lowest level in eight months and only marginally higher than the six-year low of 0.1% recorded in January.
Analysts said continued uncertainty over Brexit would continue to weigh on house price growth across the country. Prices also remain unaffordable for many younger buyers after rising significantly over the past decade at a time of stalling wage rises.
Sam Mitchell, the chief executive of online estate agent Housesimple, said: “It’s hard to say what the next month will have in store. Home movers will either be looking to strike fast to complete deals before we leave the EU, or hesitation could continue to dominate the market.”
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