Brexit blamed as housing market hits six-year low

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Brexit uncertainty has pushed a key measure of the housing market to a six-year low, in keeping with surveyors.

The Royal Establishment of Chartered Surveyors (RICS) mentioned its home worth stability – a gauge of whether or not values are extra generally rising or falling – slipped to -11 in November, down from -10 in October.

It was the bottom stage since September 2012 and worse than anticipated by economists.

RICS chief economist Simon Rubinsohn mentioned: “It’s evident… that the continued uncertainties surrounding how the Brexit course of performs out is taking its toll on the housing market.

“Certainly, I am unable to recall a earlier survey when a single subject has been highlighted by fairly so many contributors.”

Residential properties in London
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Warning is seen amongst home consumers and distributors, the survey suggests

Value falls have been most acute in London and the South East of England – the place there are extra higher-priced houses, uncovered to larger stamp responsibility, and there’s additionally anxiousness in regards to the influence of Brexit on the capital’s monetary companies sector.

The survey additionally pointed to falls within the variety of folks searching for a brand new residence, new properties being listed on the market and agreed gross sales.

There was additionally an enormous downturn in expectations for gross sales within the coming three months, with this measure falling at its sharpest for the reason that Brexit referendum in June 2016.

Mr Rubinsohn mentioned: “Warning is seen amongst each consumers and distributors and the place offers are being completed, they’re taking longer to recover from the road.

“Considerably the forward-looking indicators mirror the suspicion that the political machinations are unlikely to be resolved any time quickly.

“The larger threat is that this now spills over into growth plans making it even tougher to safe uplift within the constructing pipeline to deal with the housing disaster.”