House prices have fallen across the south of England for the first time since the last recession in 2009, as Brexit uncertainty holds down the property market.
In a sign that falling prices in London are spreading to other regions as the departure date from the EU draws near, the Office for National Statistics said the average cost of a home also fell in the south-east and south-west of England in the year to June.
The ONS said it was the first time that average prices had fallen in all three regions of southern England, covering an area extending from Milton Keynes in the north to Lands End in the west and Dover in the east, since September 2009.
House price growth across the country has slowed since the Brexit vote three years ago, dragged down by London in particular, where prices fell for the 16th month in succession in June.
Average prices across the country rose by 0.9% on the year, the weakest national growth rate since 2012. The average UK house price was £230,000 in June, about £2,000 higher than a year ago.
While property values fell in London and the south, they continue to climb in other areas, albeit at slower rates than in recent years. The biggest rise was in the east Midlands, up 3.2% on the year. Prices also rose in the east of England region, which includes cities such as Cambridge, Ipswich and Norwich.
House price affordability is still stretched for many. According to Halifax, the UK’s largest mortgage lender, the average price of a home is 5.59 times average earnings, well above the long-term average ratio of 4.29 between 1983 to 2019. Home ownership rates are falling, particularly among the under-35s, meaning falling prices could help first-time buyers onto the property ladder.
Nick Leeming, the chairman of the estate agent Jackson-Stops, said: “Data makes it clear that continued uncertainty as we creep ever closer to leaving the EU without a deal has caused hesitancy in some areas of the property markets.”
