Housing prices are often referred to when evaluating the strength of an economy. With the number of unique circumstances affecting the UK economy today, it is hard to see what is happening to house prices and say anything more than there will likely be a correction coming soon. So far this year, growth in house prices has been anything but normal and now London is seeing a decline in prices which has not occurred in some time.

Some see this time as a possible lead up to a recession. However, until more is known about the final Brexit negotiations, it is impossible to forecast the next week or next month. Two professors at the London School of Economics feel the country is on the edge of a possible challenging time in regard to housing prices growth.

There is a sector however, which is not in need of assistance or looking at a possible recession, according to many close to the housing market. The remortgage sector remains active and is expected to remain that way for several months. Lenders are able to offer deals with low interest rates and low administration fees. They are also able to potentially take a homeowner’s SVR deal and convert it to a fixed rate deal saving money each month on the monthly mortgage payment.

Slow growth of house prices over the next several months is possible when considering a few key factors from the housing market. One piece of data is resonating with experts. More than 75% of houses are currently selling at prices which are lower than asking price.

One of the London School of Economics professors, Prof Christian Hilber, commented on the look of the housing market over the next few months, saying: “If Brexit leads to a recession and/or sluggish growth for extended periods, then an extended and severe downturn is more likely than a short-lived and mild one.”