Brexit: Housing Market Bounces Back
There’s been a lot of uncertainty since Britain’s decision to leave the EU but it looks like the housing market is bouncing back. According to the National Association of Estate Agents (NAEA), the number of potential buyers is now back up to pre-referendum levels.
There was a 16% jump in potential buyers in September and the number of sales agreed rose by 12%. Alongside this government figures showed that the UK’s economy grew by 0.5% between July and September.
These figures have confirmed that the immediate economic impact of the vote to leave the EU has not been as severe as many predicted.
The Bank of England’s figures showed that during July, following the vote, the number of mortgage approvals being made to buyers plunged to its lowest level in a year and a half. Now buyers and sellers that initially took a wait and see approach after the shock announcement, are being tempted back into the market with low mortgage rates, that are expected to remain low following the interest rate cut.
Housebuilding also surged in September, from a three-and-a-half-year low in June and seven-year low in July brought on by property developers who panicked at the decision to leave the EU. The resilient housing market has helped to drive improvement in construction output volumes.
It’s not all up though as first-time buyer sales were down to a 10-month low in September. However, it’s thought that the interest rate cut and increase in the availability of loans for those with small deposits will help to keep mortgages affordable, so hopefully more first time buyers will make the commitment to purchase their home.
What do you think, how has your local market reacted to the Brexit decision? Let us know by emailing firstname.lastname@example.org