Brexit effect on property not known yet

Housing transactions fell 20% in the second quarter of the year compared with the same period in 2015

Housing transactions fell 20% in the second quarter of the year compared with the same period in 2015, the LSL/Acadata survey reported.

But it said this had more to do with the Stamp Duty deadline than with nervousness in the run-up to the referendum.

The survey also said that while annual house price growth slowed to 5.5% in July – the average house price standing at £293,318 – transaction levels edged up last month.

Furthermore, because there was such a huge spike in sales in March, despite the massive decline in April, sales in the first half of this year are likely to have been 4% higher than for the same period last year.

The survey said that the “exceptional” sales level in March more than compensated for the decline since.

It also pointed out that while sales volumes rose in July, these would have been registered at the Land Registry before the referendum took place.

Adrian Gill, director of Your Move and Reeds Rains – both owned by LSL – said: “Brexit may well have an impact on the housing market, but it’s not showing yet.

“Even when it does, there will be positive as well as negative influences on the market, which clearly has some strong long-term drivers for continued house price inflation.”

According to the survey, house prices nudged up just 0.2%, making July the fifth month in succession at which the annual rate of house price inflation has fallen. Even so, the 5.5% rise in annual house price inflation put an average gain of £15,422 on house prices.

Acadata analyst Peter Williams said: “The market was contracting pre-Brexit and the question remains how will it perform post the Brexit vote and ultimately, on exit?”


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Written by: Houseladder