You are here: Home - Mortgages - First Time Buyer - News -

The towns where house prices are most at risk from a ‘no deal’ Brexit

0
Written by: Christina Hoghton
19/09/2018
Areas where property prices are polarised between low-cost flats and high-value houses could see prices fall the fastest and furthest.

House prices in London’s commuter belt will be hardest hit in the event of a no-deal Brexit because it is home to some of the most polarised property markets in the country, according to British Pearl.

The property investment platform said that Stevenage, Watford and Hastings are braced to feel the full brunt of the no-deal ‘sledgehammer’ because the price gap between flats and houses are among the greatest in Britain and have widened the fastest.

Landlords and buyers are keen to avoid speculative bubbles and over-heating local housing markets because of the obvious risk that prices can collapse further and faster in a correction.

Mind the gap

The company found that the average detached house in Stevenage was 197% more than the average flat (£553,697 vs £186,422). This was the fifth largest gap anywhere in the UK and had grown 68.2% in five years.

The combination of these two measures makes the Hertfordshire town the most polarised property market in Britain, followed by Watford and Hastings.

The average difference in price across the UK is currently 50.6%, and has grown 24.2% in the past five years.

At the other end of the spectrum was Doncaster, where the average detached house was 140.6% more than the average flat, while the gap between prices over the five years increased just 18.4%.

Could prices crash by a third?

Last week Bank of England Governor Mark Carney warned a chaotic withdrawal from the EU could cause house prices to crash by as much as 33%.

However, the prospects for property prices in Britain varies wildly between areas.

James Newbery, investment manager at British Pearl, said: “Parts of the UK property market have made considerable gains and, the relative value of homes in different price bands now poses a serious risk to homeowners and investors in the run-up to March 2019.

“The fallout from no-deal is most likely to be felt hardest in the capital’s commuter belt, where markets have moved too far and too fast. That is bad news for both ordinary investors and homeowners, particularly those who have borrowed to make their purchase.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
London drags UK house price growth to five-year low

Average house prices in the UK increased by 3.1% in the year to July– the lowest annual growth rate since...

Close