Brexit Series: Brexit jitters UK housing growth to 7-year low

The Halifax housing market report once again pointed at the ongoing slump in the UK housing markets as the growth in prices decline to the lowest in 12-years amid lackluster demand. The report came out today, and it is all red for the UK housing market, though for consumers falling prices are only desirable.

Key highlights from the Halifax house price index report,

• Average house price in three months to November was £224,578, which is just 0.3 percent higher than the year-ago price. Price declined 1.4 percent on a monthly basis, making it the third decline in four months. The index is down 1.1 percent on a quarterly basis, which suggests that the price slump is accelerating the pace. See chart for more clarity,
• While home sales rose by 2.4 percent in three months to October, compared to the previous three months but it wasn’t enough to push prices higher.
• Stocks have been rising, with sales to stock ratio declining to the lowest since September 2013 as each surveyor having on an average 42.9 homes to sale.

The UK housing sector remains one of the most affected by the Brexit uncertainties. Since the Brexit decision annual growth in prices have slumped from 10 percent to just flat line.

The housing market adds to the negative fundamental for the UK benchmark stock index FTSE100, which is currently trading 6800 area, and for the pound, which is trading 1.276 against the USD.