June 2016 saw a 0.2% increase in property prices, which brought annual inflation to 5.1%, according to figures from Nationwide. This is somewhat unexpected, as property insiders had initially predicted that buyers would be put off at the prospect of the looming EU Referendum results, and what this could potentially bring.
The latest data from Nationwide also revealed that the north of England has replaced Northern Ireland as the location with the lowest priced houses in the UK.
Post-Brexit property market
Now we know the result of the EU Referendum; one of the questions on everyone’s lips is what will happen to the property market. Are house prices going to fall now? Is this the calm before the storm? Unfortunately, the only thing that’s certain now is the uncertainty of the whole situation.
This was reiterated by Robert Gardner, Nationwide’s chief economist, who said “it will be difficult to assess how much of the likely fall-back in transactions in the quarters ahead is because buyers brought forward purchases to avoid additional stamp duty, and how much is due to increased economic uncertainty following the referendum result.”
In the meantime we should remember the principle of supply and demand. There is still a shortage of properties, so there are still good deals around. Ian Thomas, co-founder of LendInvest said, “Brexit may create opportunities too. It could result in the housing market cooling and resetting in areas where house price growth has locked out first-time buyers and others that want to purchase property.”
Whilst nothing is for certain at the moment, you can read some of the ways in which Brexit could affect the UK property market in our previous post, written before the results of the EU Referendum.
Thinking of selling your house? Speak to our property market experts today on 020 7078 0214, or send us an email at email@example.com, and we’ll get right back to you.