U.K. Prices Are Rising, But Spread of Coronavirus Could Set Real Estate Market Back

U.K. Prices Are Rising, But Spread of Coronavirus Could Set Real Estate Market Back

Property prices in the U.K. are still continuing to rise in the aftermath of the December election and the country’s formal exit from the European Union, but the spread of coronavirus could potentially set the market back, according to a report Friday from Halifax.  

“We’ve seen the dark clouds of Brexit-inspired uncertainty hang over the market for some time causing a drop in price growth and transactions,” Michael Stone, founder and CEO of Stone Real Estate, said in a statement. “However, just as they finally start to make way for blue skies and buoyant price growth, there could be another storm front rolling in in the form of the threat from the coronavirus.”

The total number of confirmed Coronavirus cases globally stood at 101,598 on Friday afternoon, and 3,460 people have died as a result, according to the Center for Systems Science and Engineering at Johns Hopkins University. In the U.K., there are 163 confirmed cases. 

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Property prices rose 2.8% across the U.K. in February, compared to the same time last year and pushed the average home price in the nation up to £240,677 (US$312,904).

The increase is significant compared to the lackluster, or non-existent, growth witnessed of late, but is below the 4.1% logged in January and the 4% increase seen in December, the first signs of significant recovery after months of tepid conditions at the hand of widespread political uncertainty.

“Currently, top-line price growth is yet to see any impact, but in the new-build sector, business activities on foreign soils have all but ceased and many housebuilders have been unable to showcase their latest development launches to foreign investors,” Mr. Stone said. 

If those conditions persist, foreign investment could drop off and house prices could take a hit, according to Mr. Stone.