House Prices Rise Despite ‘Brexit’ Fears
UK house prices rise despite ‘Brexit’ fears suggests the latest data from Halifax Bank. The Halifax report indicates that the house prices in the UK are remaining strong ahead of the EU referendum. In Halifax’s monthly house price index, Halifax said the average house price actually rose by 1.4% compared to the previous quarter. In a period where it was anticipated the market would soften due to the EU referendum. Taking the UK’s national average house price to £213,472. The annual rate of house price growth remained steady at 9.2%. The fear of the EU referendum’s potential knock on effect to the housing market should the UK face a “Brexit” remains, and investors are waiting before purchasing property in central London. With both commercial and residential property buyers sitting on the fence until the referendum is concluded. It has been reported that many buyers are requesting “Brexit” clauses are included in contracts, which would provide an optional penalty free opt-out clause should the UK vote to leave the EU. Halifax Housing economist Martin Ellis says, “The strength of demand, combined with very low supply, is causing house prices to rise at a brisk pace in quarterly and annual terms. Increasing affordability issues, caused by a sustained period of higher-than-earnings house price growth, should curb housing demand and result in some slowdown in house price growth as the year progresses.” The very fact that house prices rise despite ‘Brexit’ fears, highlights the resilience of the housing market. Amidst the backdrop of uncertainty of the EU referendum, which some anticipated would significantly lower prices across the UK, emphasises the stability and robustness of the market which is organically underpinned by huge demand for housing which is far outstripping current supply. For more information check our Blog Page
