When the UK voted to leave the EU on 23rd June, the potential outcome for the property market was unclear. Now three months on, we can start to see how the market is performing in the immediate aftermath, and whether industry expert’s pre-Brexit predictions are showing any signs of coming true.
Post-Brexit house prices
House prices haven’t seen a dramatic change post-Brexit – data from the Office for National Statistics shows house price growth went from 9.7% in the year to June, to 8.3% in the year to July. Thomas Fisher, an economist at PwC, said this moderation “suggests market demand remained relatively resilient after the Brexit vote.” He went on to say that PwC predicts “the average UK house price growth will decelerate to around 5% in 2016, and around 1% in 2017.”
However, the Royal Institution of Chartered Surveyors (RICS) believes that continued under-supply means house prices are likely to rise in the near future and predict that over the next five years we’ll see a 3.3% rise per year. Much like before in the build up to the EU referendum, predictions are varied.
Is there a silver lining for first-time buyers?
According to propertyreporter.co.uk, there were 12% more first-time buyer valuations in July 2016, than in July of the previous year. Plus, with the current low-interest rates, there are some fantastic mortgage deals around, making it a great time for first-time buyers to get on the property ladder.
It would seem that overall, the property market is proving resilient – it’s important to remember the principle of supply and demand. However its too early to tell for certain whether the current property market trends are a direct result of the EU referendum outcome, or if this is due to other factors as well, such as the stamp duty rises in April.
Thinking of buying your first home? Speak to one of the Kingsley Hamilton Estates property experts today on 020 7078 0214, or send us an email at firstname.lastname@example.org.