Housing market rebounds after Brexit impact

The housing market has regained momentum following the initial dip of EU referendum according to the latest RICS UK Residential Market Survey.

The survey revealed an increase in confidence in the housing market after the Brexit result saw a downturn in activity. It is predicted that both prices and number of sales will rise over both three and twelve month periods.

August saw an increase of 12% of respondents noting an increase in prices. This was up from a 5% rise in the previous month.

Although prices appear to have stabilised across the country, both London and the West Midlands still experienced a drop off in sales – the pace of the decline in these areas has slowed however.

The survey expects that sales will see a clear improvement within three months and climbed completely out of negativity over the twelve-month period.

The lack of housing to support the increasing demand will see house prices rise. The survey doesn’t expect to see this situation to change any time soon as instructions to sell fell once again during August.

Simon Rubinsohn, Chief Economist at RICS: “There are clear signs that the housing market is settling down after the initial surprise of the outcome to the EU referendum.

“Buyer enquiries did dip again in August but only modestly, and more significantly, sales expectations are beginning to edge upwards once again.

“It is likely the swift response from the Bank of England has played a role in helping to support confidence.”

This week, Halifax released their House Price Index, which indicated that house prices have risen by 6.9% over the past twelve months but slowed in growth in August.

Prices in the three months to August were 6.9% higher than in the same three months of last year. This was down from July’s figures of 8.4% in July and continued the downward trend since March when the annual rate reached 10.0%.

 

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