Since the UK voted to leave the European Union in June 2016, the headlines have been dominated by how Brexit will affect different markets and the economy and non-more so than the property sector.
While much of the property headlines report the alleged negative impacts of Brexit on the housing market, recent research offers a different view.
The research suggests Brexit’s negative implications on the housing market are exaggerated and Britain’s exiting of the EU has yet to make a serious dent on the property sector and looks unlikely to do so in the near future.
Research by Hometrack notes year-on-year house price rises, particularly in northern cities which have seen an average 6% rise. The analysts suggest that the decrease in property prices in London is largely due to fundamentals within the market, such as affordability issues and tax changes, rather than being caused by Brexit.
In terms of how the market will fare when Britain formerly leaves the EU in March this year, Hometrack researchers state:
“Housing indicators suggest no imminent deterioration in the outlook for prices or levels of market activity.”
Talking to This is Money, Richard Donnell, Insight Director at Hometrack said:
“Two and a half years on from the Brexit vote, our analysis reveals a limited direct impact from Brexit uncertainty on the housing market thus far.
“Large regional cities continue to register above average house price inflation with the discount between asking and sales prices narrowing on rising sales volumes.”
“Our lead housing indicators suggest no imminent deterioration in the outlook for prices or levels of market activity,” Donnell added.
If you are looking to buy or sell property in 2019, property auctions can be a cost-effective way to sell or purchase property. Get in touch with Auction House London for more information about our regular and well-attended property auctions in London.