Sunday, May 22, 2022

UK house prices could fall back to 2004 levels

Average house prices in the UK could crash to levels not seen since 2004 in the event of a ‘no-deal brexit’, new research from has revealed

New research from online estate agents,, has revealed that in the event of a ‘No-Deal Brexit’ average UK house prices could fall back to levels not seen since 2004.

Bank of England Governor, Mark Carney, has warned ministers that, should no deal be reached on the UK’s exit from the EU, house prices could slump 35% over the next three years.

According to the latest Land Registry figures, the average UK house price in June 2018 was £228,384. If prices fell by as much as Mark Carney suggested they could fall, the average value of a UK property would slump to £148,449. Housesimple research reveals the last time prices were lower than this figure was June 2004, more than 14 years ago. also looked at the impact of a 35% drop in house prices across 50 major UK towns and cities. The research revealed that average prices in London would fall from £476,752 to £309,889, but due to the phenomenal property boom in the capital over the past 7-8 years, this would only mean prices fall back to October 2012 levels.

The impact of a 35% slump would be felt a lot greater in many Northern towns, where house price growth hasn’t been so rapid over the past decade. For example, a 35% drop in Blackpool, would see average prices crumble from £103,920 to £66,890, a level that hasn’t been seen since March 2003. While in Durham and Newcastle averages prices would drop back to June 2003 levels. At the other end of the scale, Luton would only see average prices fall back to March 2014 levels, from £238,243 to £154,858.

CEO of online estate agents, Sam Mitchell said Mark Carney has been incendiary with his comments, but if his predictions help galvanise politicians into action, then maybe the end justifies the means. The longer the no-deal time is, the more uncertainty will weigh on house prices. However, it’s highly unlikely prices will slump to the level that Carney has predicted, even with a “no-deal”. The UK property market has proven to be able to withstand some pretty turbulent economic news, not least when the country voted for Brexit and after Article 50 was invoked. And there’s no reason to think it can’t withstand whatever lies ahead.


The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply