It has now been more than 100 days since the UK voted to leave the EU in the ‘in’/’out’ referendum. While, practically speaking, not much has happened in terms of the UK taking the necessary steps towards leaving, the move has had a significant effect on our economy. What has happened then, to the housing market in that time?
Earlier this year, we reported that demand was outstripping supply in the post-Brexit rentals market. The latest figures from the HomeLet Rental Index have shown that rents are continuing to rise, thanks to the shortage of available rental property, but they are rising at a lower rate than last year. This suggests that Brexit might be influencing the the rental market.
There could also be other factors at play, however, such as the recent change in Stamp Duty regulations, which meant that many investors pushed sales through earlier in the year to avoid increased charges, thus creating greater supply than usual for a few months, which will probably now decrease.
Moreover, experts suggest that in the wake of Brexit, housing construction could slow down, which, again, would lead to a squeeze on rental supply.
What, though, for the sales market? Well, statistics indicate that the number of sales per month has fallen nationally since May – but it must also be remembered that we have just been through the traditionally quiet summer season.
It is well known that the housing market tends to cool as the weather is warming up; people tend to be on holiday in June, July and August, meaning that house buying and selling is put out of their minds.
However, sales prices have risen more slowly than during the same period last year, again raising questions about the impact of Brexit on people’s buying and selling habits.
Once September rolls around, estate agents usually expect the market to start picking up again, as people often have the goal of buying or selling in time to be settled for Christmas.
For these reasons, Miles Shipside, director at Rightmove, believes that ‘By autumn we should get a clearer view of any post-referendum hangover’.
Let’s all keep our eyes peeled, then, as it seems the next couple of months will tell us whether or not Brexit could affect property prices near you in the long term.
Are you eager to complete your property purchase or sale by Christmas? Contact the Julie Twist team today to receive expert advice on finding the deal that you’re looing for.
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