House prices tumble as no-deal Brexit looms

Fears of a no-deal Brexit seem to be having an effect on the UK’s property market, as prices fell last month.

According to the Nationwide building society’s latest snapshot, prices tumbled by 0.2% in September, contradicting the 0.1% rise that some economists had forecast.

The average property price last month was £215,352, down from £216,096 in August. Prices fell most dramatically in London and the south-east – and it’s the capital’s annual rate drop of 1.7% that’s dragged down the national average.

However, elsewhere in the country the average cost is still rising, with Northern Ireland’s growth of 3.4% the highest in the land.

So, what’s going on? Howard Archer, the chief economic adviser to the EY Item Club, reckons that “with the economy largely struggling and the outlook highly uncertain, we suspect that house prices will remain soft in the near term at least”.

Meanwhile, 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.”

And here’s Nationwide’s House Price Index to back up my story.