Financial & Legal News

Local Housing Market buoyant after Brexit

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A national estate agency has recently completed analysis of the UK housing market post Brexit and says the outlook is positive

The analysis, which is based on a daily sample of over 500,000 actual properties for sale in the UK over the last 3 months, does not suggest a housing market crash has occurred post Brexit, although in London stamp duty is having a significant effect on properties priced upwards of £2 million.

This years the housing market has been hit by the stamp duty changes, buy to lets targeted in budget and general unease in the run up to the referendum.

However, since the Brexit vote, the Bank of England has been actively working to calm market place fears, stabilize the UK economy and stimulate economic activity.

In the North West our property team has been working flat out all summer after a surge in new instructions for both commercial and residential.

Conveyancing Solicitor, Victoria Marshall, said:  “Pre stamp duty changes every landlord wanted to complete before March 31st earlier this year, we had an ease off before Brexit and a chance to take a breath, but since then we have been receiving lots of instructions for a wide variety of properties.

“I’ve been working in conveyancing for over 10 years and this is the busiest I’ve know it for some time,” she added.

The number of properties on the market in the UK has risen by 1.0% over the last 3 months (mid-June to mid-September).

The number of properties under agreed offer (including sold subject to contract) has fallen by 2.5%. Of the approximate 320,000 UK properties with an agreed offer, this percentage reduction represents a total of 8,000 fewer properties. Under Agreed Offer properties now represent 36.1% of all properties on the market, down from 39.4% in mid-June before Brexit.

  • •Number of properties on the market in the UK has increased since the vote but the proportion sold (subject to contract) has decreased – but only by 2.5%
  • •Asking prices of all UK properties for sale down by only 2% (from £297,508 in mid-June to £291,547 today)
  • •National asking prices have fallen by 2% since Brexit

Nick Leeming, Chairman at Jackson-Stops & Staff, who commissioned the survey commented:

Three months after the UK’s historic vote to leave the EU, the property market remains alive and active. There are more properties on the market today than on the day of the Brexit vote, and there has only been a marginal decline in the number of properties under offer.

“House prices have also declined only moderately. The normal events – families growing, the desire to downsize, a new job, a change of lifestyle – the fundamental drivers for people buying and selling property, have remained unchanged.

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.

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