Nationwide have released their house price index for August 2016, showing a monthly increase in property values of 0.6% and an annual increase of 5.6%.
It was expected that the market would cool following Britain’s decision to leave the EU however, this doesn’t seem to be the case.
Nationwide have commented that this pickup in price growth is somewhat odd with other signs suggesting the market has slowed in recent months. However, they suggest that the declining buyer demand experienced has been matched by a lack of stock on the market, helping to keep the market balanced and enabling prices to continue their upward trend.
But eMoov founder and CEO, Russell Quirk, doesn’t believe this to be concrete evidence of a Brexit fallout but more a seasonal impact due to the slower summer season, with the market due to get back up to speed during September and monthly price growth in August still double that of August 2015.
Now two full months on from Brexit D-day and still no inkling that there has been any immediate impact on the UK housing market, in fact quite the opposite.
House prices have increased 0.6% in August, a marginal increase, but double that when compared to Nationwide’s figures for this time a year ago. So rather than the changes to stamp duty and the Leave vote toppling the property market, we’re actually in a stronger position than we were in August 2015.
This continued increase has been attributed to a slowdown in both buyer demand and housing supply, which has helped to keep the scales finely balanced. However, this cooling in the market on both sides of the fence highlights that any steam lost is almost certainly a seasonal adjustment.
With the summer holidays now drawing to a close and life returning to normality for many, I expect we will see the UK housing market kick it up a gear as we head into September.Russell Quirk