This morning the bank and mortgage lender Halifax released their latest house price index for the month of July. The report that tracks the change in average house price provided the first look at the UK market following Britain’s decision to leave the EU in June.
Although Halifax base their report on mortgage acceptance rather than actual completions which tends to work on a lag of one or two months, there seems to be signs that Brexit has had a detrimental impact on the UK property market, with prices falling -1% in July when compared to June. This said, the average house price is still 8.4% higher than it was this time last year and eMoov founder and CEO Russell Quirk, believes there’s no reason to panic just yet.
This is the first full damage assessment of the UK property market by Halifax since Britain hit the Brexit iceberg back in June.
Although it would seem the UK property market has lost steam since the vote with prices dropping 1% since last month, the summer period is always a traditionally slower time of year for residential property transactions.
With prices still up 8.4% year on year, there’s no real evidence that UK homeowners need to jump ship just yet and so I would urge them to remain calm and avoid any rash decisions.
Once the market picks back up in a couple of months’ time and the Brexit uncertainty starts to subside, I’m confident the previous upward trend in value enjoyed by UK homeowners will continue.
In the meantime, this slight slowdown in price growth coupled with yesterday’s rate cut by the Bank of England, make it an ideal time for those considering a property purchase to strike while the iron is hot. Or slightly cooled in this case.Russell Quirk