House prices back to 2004 levels if Mark Carney’s prediction accurate

House prices back to 2004 levels if Mark Carney’s prediction accurate

15:54 PM, 16th September 2018, About 6 years ago

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Average UK house prices could fall back to levels not seen since 2004 if Theresa May is not able to secure a Brexit deal, according to research by online estate agents Housesimple.com.

Bank of England Governor Mark Carney’s warned ministers a “no-deal” Brexit could see house prices slump 35% over the next three years.

According to the latest Land Registry figures, the average UK house price in June 2018 was £228,384. If prices fell by as much as Mark Carney suggested they could fall, the average value of a UK property would slump to £148,449. Housesimple research reveals the last time prices were lower than this figure was June 2004, more than 14 years ago.

Housesimple.com also looked at the impact of a 35% drop in house prices across 50 major UK towns and cities. The research revealed that average prices in London would fall from £476,752 to £309,889, but due to the phenomenal property boom in the capital over the past 7-8 years, this would only mean prices fall back to October 2012 levels.
The impact of a 35% slump would be felt a lot greater in many Northern towns, where house price growth hasn’t been so rapid over the past decade. For example, a 35% drop in Blackpool, would see average prices crumble from £103,920 to £66,890, a level that hasn’t been seen since March 2003. While in Durham and Newcastle averages prices would drop back to June 2003 levels. At the other end of the scale, Luton would only see average prices fall back to March 2014 levels, from £238,243 to £154,858.

Sam Mitchell, CEO of online estate agents HouseSimple.com, comments:

“Mark Carney has been incendiary with his comments, but if his predictions help galvanise politicians into action, then maybe the end justifies the means. The longer we go without having a deal on the table, the more uncertainty will weigh on house prices. However, it’s highly unlikely prices will slump to the level that Carney has predicted, even with a “no-deal”. The UK property market has proven to be able to withstand some pretty turbulent economic news, not least when the country voted for Brexit and after Article 50 was invoked. And there’s no reason to think it can’t withstand whatever lies ahead.”


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Comments

Dennis Leverett

13:20 PM, 23rd September 2018, About 6 years ago

Reply to AA. I think "bored on a Sunday" explains it all, I suppose ignorance is bliss in a sense. In all my 68 years I've never been bored always too much to do. I respect your opinion but it's a shame you have to belittle 52% of population whilst hiding behind AA. A bit of a Sunday trollist I suppose. I certainly live in the 21st century and that's exactly why I want out of this mess called the EU that's failing quicker than most realise. It ain't gonna be easy but a great opportunity to sort out Government and change things and I'll be in there pushing. I've worked hard all my life for what I've got and not going to give up yet.
Enjoy the rest of your boring day, if you can of course.

AA

18:45 PM, 23rd September 2018, About 6 years ago

Reply to the comment left by Dennis Leverett at 23/09/2018 - 13:20
AA are my initials, you can check my profile. And the contributor known as Gromit - FYI his real name is not Gromit. Its called a "handle".
Having spent a lifetime and a half studying economics to quote Mrs Thatcher - " you cant buck the markets"
My position is based on economic arguments, yours on political ideology. Memories of green that never were.
You maybe of the view that just because someone can hold a knife they can become a heart surgeon. I do not ascribe to that..
You comment you have worked for everything you have and not ready to give it up yet. I think you may have shot yourself in the foot there. Aside the obvious that to date what you have is against the landscape of being within the EU and this is a property forum, taking a Brexit position , you have introduced an unknown variable into your wealth structure i.e the consequential outcome. Now that is just not logical.

Dennis Leverett

19:33 PM, 23rd September 2018, About 6 years ago

Firstly you know nothing about me and make assumptions about me based on nothing. Your profile shows nothing other than AA so no better off. Our so called economic experts are so often wrong. Mrs Thatcher, who sold off most of the council housing to get a few extra votes, is certainly in your past and it seems you are the one stuck in a bubble. I do apologise for not being able to see the future perhaps you could help me there as it seems you can. I have my opinion be it right or wrong and I respect the views of others but it seems you are the one who knows it all above and beyond anyone else.

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