Brexit 6 years on. Where are UK house prices now?

Brexit 6 years on. Where are UK house prices now?

It's been 6 years since the decision to leave the European Union took place. As you're reading this, in the year of 2022, the UK has officially spent over a year out of the EU.

The growth rate surrounding property in the UK was exponential in 2021, due to contributing factors such as people seeking new homes post covid as well as tax savings with stamp duty tax holiday.

Are we seeing this dramatic rise in prices resume throughout 2022?

The Office of National Statistics comments on the continuation of rising property values with March alone seeing a 1.1% increase. With a further, mighty 12.4% increase in the year to April. UK house prices over the given 6 year Brexit period are up 30.6% shedding light on why it really is a sellers market; not to mention that there exists still a supply & demand imbalance with the number of properties fewer than the number of parties looking to buy. It can be said, however, it is also very much a buyers market as their new purchased residences can expect to see significant growth over the coming years as expectations for house prices are thought to meet a further 18.8% increase by the year of 2026.

Specifically in London, the growth rate is anticipated to rise by approximately 5.6%, and 1.6% increase in Prime Central London, once again proving why London are in the top 5 most expensive cities in regards to property prices.

One particular area in Prime Central London that has seen significant growth in house prices is St John's Wood. More so perhaps due to post covid desires for larger properties, and access to outdoor space as opposed to Brexit but nonetheless, St John's Wood has outperformed every area in Prime Central London with houses sold up 14% compared to the previous year. St John’s Wood is the only area in prime central London that offers an abundance of houses with large gardens, important to note that a number of houses spanning over 5,000 Sq ft have also been granted permission to extend. For example, Mayfair and Knightsbridge are generally unable to offer such houses and those that do exist come to the market infrequently and at an extreme price premium.

At the time, it was the belief of many experts that property prices would be largely impacted by Brexit, with many anticipating a severe drop in prices. However, property prices have are at the highest level in decades and there is no signs of this stopping as we sail through the rest of 2022.