House sales OK outside London

Hometrack’s UK Cities Index shows properties have still been coming to market in the run up and immediate aftermath of the Brexit vote, analysis of the top cities in the UK has revealed.

Sales volumes held up in the run-up to and immediate post-Brexit period in all cities outside of London, according to Hometrack.

Sales were up 5% outside London in the three months to mid July, but down 8% relative to the previous 12 months in the capital.

New listings in England and Wales based in all cities except London have grown 10% faster in the past three months than the average increase in supply seen over the last 12 months, according to the report.

The data includes figures up to mid July, where listings have risen 15% faster than the 12 month average in London.

Overall the data suggests annual house price growth in the UK’s top 20 cities is starting to plateau with growth remaining at 10.2% in June, at £240,500, the same level as May 2016.

The levels are still ahead of the 6.9% growth seen in June 2015.

Cities in northern parts of the UK seem to be registering far stronger price appreciation than those in the south of England post-Brexit, according to the data.

Richard Donnell, insight director at Hometrack, said: “The headwinds that were facing the London market in the lead up to the EU referendum have intensified on the back of the vote to leave and are resulting in slower sales rates.

“It is still early days, and seasonal factors also need to be considered but the growth in new listings and slower sales points to slower price growth in the months ahead.

“This growth in supply reflects a mix of new homes filtering through from London’s expanded development pipeline, investors looking to take capital gains, or selling to de-leverage their investments following the reduction in tax relief on mortgage payments for buy-to let investors.

“In contrast, in many large regional cities, sales appear to have held up thanks to a combination of much better housing affordability, improving economic growth and record low mortgage rates helping to stimulate demand.”

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Written by: Houseladder