Nationwide have released their house price index for July 2016, providing the first look at the post-apocalyptic UK housing market since Britain decided to leave the EU.
House prices increased by 0.5% in July, with annual house price growth similar to that of last month (5.1%) at 5.2%, bringing the average UK house price to £205,715 according to Nationwide.
Nationwide compiles its figures from agreed mortgages and not actual sales so they have warned that any real impact of the Brexit vote could yet to surface. However, prices have continued their upward trend enjoyed over the last five years and July is traditionally a quiet time for property sales in the UK, so it would seem that Brexit has had no immediate detrimental impact on Britain’s housing market.
Founder and CEO of eMoov.co.uk, Russell Quirk, comments on today’s report.
The first evidence of the post-apocalyptic Brexit property market and on the face of it, not a lot to worry about with prices up 0.5% monthly and 5.2% annually.
Yes, this isn’t a huge rate of growth but prices are still continuing the upward trend enjoyed since 2012. That’s not to say there won’t be any impact, as the likes of Nationwide and Halifax usually report on somewhat of a lag, due to the use of mortgage offers data, not cold hard completions.
This said the UK property market is one of the strongest in the world and historically house prices are higher than July 2014 and July 2015, so it’s looking pretty healthy across the board.
It’s important UK home sellers take any Brexit doomsayers and their forecasts with a pinch of salt and avoid acting irrationally where the sale of their home is concerned.
We are entering a traditionally slower time for the property market and so this cool in price rate growth is always likely to happen during the summer months. Once September rolls around again we predict things will start to pick up and prices will continue their sharp ascent.Russell Quirk