Yahoo Finance The signs don't look good for UK property prices in 2019
The signs are stacking up that the UK’s property market could face a difficult year ahead in 2019.
The past 24 hours alone has seen an array of figures released that will alarm home owners and investors, though some first-time buyers able to afford a mortgage may see rays of hope.
The latest numbers from the Office for National Statistics (ONS) yesterday showed UK property price growth fell to a five-year low, with 2.5% marking the smallest annual rise since mid-2013.
The figures showed London’s slowdown continuing for another month, with certain boroughs booming but prices falling across the capital as a whole.
But a survey out today also shows the number of new properties put up for sale has fallen to its lowest level since July 2016, while enquiries by new buyers have fallen for a sixth month in a row.
READ MORE: The London boroughs where prices are rising and falling fastest
The findings by property company RICS UK suggest the slowdown is spreading beyond London and the south-east’s overheated market, with East Anglia and the south-west of England showing the next weakest prices.
Simon Rubinsohn, RICS Chief Economist, said: “Although some contributors to the survey have taken comfort from a better start to the year than anticipated, a larger proportion are continuing to find the market a difficult one in which to do business.
“Resolution of the Brexit negotiations is widely seen as critical to encouraging potential buyers back into the market, although whether that will be sufficient in London and parts of the South East where affordability remains stretched and the tax changes are most penal remains to be seen.”
READ MORE: Why the Wales market is booming as UK property slowdown continues
A further blow to the prospects of price growth in 2019 came in the form of accounts filed by real estate agent Countrywide.
The figures show profits at Countrywide (CWD.L) halved last year, with its core earnings dropping to £33m ($42.6m).
The company said ongoing uncertainty over Brexit was weakening the housing market, but it also lost experienced staff in a significant restructure in 2015, according to Reuters.
The Bank of England has previously warned property prices could sink by as much as 30% if the UK crashes out of the EU without a deal on 29 March.
The government reached a deal with Brussels to help smooth Britain’s exit from the bloc last year, but there is still deadlock in parliament, with MPs divided over whether to back the deal.
