According to building society Nationwide, it may be many months before any impact of Britain’s exit from Europe is noticed in the housing market.
The recent report by the UK’s largest building society did note a slight rise in house prices in July (a 0.5% improvement on June and 5.2% on July 2015), but said that demand could possibly be reduced in the coming months as a result of uncertainty following the Brexit vote.
In July the value of the average UK home was £205,715, Nationwide stated.
The report is based on mortgage offers provided by Nationwide in July – the first report produced since the results of the EU referendum were revealed, and so it is clearly a little early to be able to judge any change in the market.
Robert Gardner, Chief Economist for Nationwide, said: “Any impact from the vote may not be fully evident in July’s figures, as there is a short lag between a buyer making the decision to purchase a property and applying for a mortgage.
“Household confidence fell sharply in the wake of the referendum result, especially attitudes towards making major purchases, which in the past has correlated with mortgage activity, though less closely in recent years.
“Even if there is a fall back in demand as a result of economic uncertainty, the impact on house prices is not certain, as potential sellers may also hold off from placing their properties on the market.”
Jonathan Hopper, Managing Director of Garrington Property Finders commented: “While you can’t read too much into the July house price rise, what is certain is that there has not been a crash in property prices since Brexit, more of a soft landing.
“The sheer lack of supply is helping to prop prices up. The pendulum has swung largely in favour of the buyer since Brexit, but it is by no means a black and white market.”
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