On the go: Brexit uncertainty rattling the UK housing market could lead to pensions wealth overtaking the value of private housing in the UK, according to analysis by Hymans Robertson.
Average house prices in the UK increased by 0.7 per cent in the year to July 2019, down from 1.4 per cent in June 2019, according to the Office for National Statistics.
This is the lowest annual rate since September 2012, when it was 0.4 per cent. Over the past three years, there has been a general slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England.
Commenting on the analysis of, Ross Fleming, co-head of DB Investment at Hymans, said: “Figures from the ONS show that UK property prices are on the precipice of decline with Brexit on the horizon as the economic outlook remains uncertain. Our analysis shows that DB pensions, on the other hand, are expected to be more resilient than property in the near term, particularly if there is a no deal Brexit scenario.”
He added: “In times of greater uncertainty when interest rates fall, DB pensions increase in value. Conversely property prices are more likely to fall.”
Mr Fleming concluded: “So much focus is put on property as an individual’s main asset, but those fortunate enough to have a DB pension may well be surprised that it is worth more. They may see its value becoming higher than the value of their home from October.
