Brexit fears see property prices remain at eight-year low

Brexit fears see property prices remain at eight-year low

House prices rose for the third consecutive month in March, but remain at an eight-year low, according to the latest figures from Rightmove.

The property website reported asking prices increased by 0.4 per cent in March, the lowest for this time of year since 2011.

The average cost of a house in the UK now stands at £301,918.

The growth in the Rightmove house price index was marginally slower in March than it was just a month prior. In February, asking prices rose by 0.7 per cent.

Alastair McKee, managing director of One77 Mortgages, said: "We are still far from out of the woods where Brexit is concerned and we will continue to see asking prices adjust to more natural levels to account for this.

"However, while they may be some way of historic peaks, three consecutive months of positive growth suggest that a degree of confidence is returning to the market. 

"When you couple this with the fact the average time to sell has also dropped it suggests momentum is beginning to build for the year ahead.

"This is almost definitely a knock-on result from the uplift in buyer demand registered already this year and as this demand grows, asking prices will continue to follow suit."

London, specifically, saw asking prices fall 1.1 per cent, while inner London prices plummeted by 5.5 per cent – a positive for first-time buyers in the capital.

The falls wipe out the increases recorded by the index in February when London had a rise of 2.2 per cent and inner London had an average monthly change of 5 per cent.

The average house price for inner London in March is £717, 930 and £607,426 for Greater London.

Andy Soloman, founder and chief executive of software provider Yomdel, said: "While Brexit continues to stick in the throat of the UK property market it is clear that the further you move from the shambolic epicentre of Westminster, the less it phases UK buyers and sellers.

"The property market in Westminster is on its knees but in contrast, the north west and Scotland are positively on fire. The Midlands, Wales and Yorkshire are also more than holding their own and thankfully the fragmented nature of our property landscape means these frontrunners are holding the proverbial head of the UK market above water.

"We expect that this will continue to be the case with no real signs of life returning to London and the South East until a deal is done and an exit is made. Which is unlikely to be any time in the near future."

Jenny Turton is a freelance journalist