How has Brexit affected the property market?

As the property market expert in your area, I've been asked how Brexit is affecting the housing market, particularly at valuations. As a local estate agent I feel that this is a great opportunity to share what I know.  

I thought you might find it useful to see some very short-term figures that I share with customers and potential customers. 

The House Price Index was released to the media this morning and gives a national picture of house prices and activity over the past few weeks.

For lettings, the quarterly Rental Trends Tracker released last week will help shed light on the immediate short-term effects of Brexit and also the recent stamp duty changes.

Here are some key facts that may help answer questions: 

SALES:

Housing market steady post referendum

•Price of property coming to market falls 0.9% (-£2,647) this month, within usual expectations for the run-up to the summer holiday season

•Buyer demand in the two weeks since the surprise referendum result is consistent with 2014 although down on 2015: Same period in 2015 benefitted substantially from post-election boost so enquiries this year are down 16% compared to that period

◦2014 was not distorted by the election so is a better basis for comparison, and buyer enquiries are at the same level as the like-for-like two weeks in 2014

•Most agents report market momentum continuing due to shortage of suitable property for sale, buyers fearful of missing out on scarce choice, and affordability and availability of low mortgage rates

•Sellers seem undeterred – compared to the same period last year, the two weeks pre-referendum saw the number of new properties coming to market down by 8%, and the two weeks post-referendum saw them up by 6%

LETTINGS:

Buy-to-let rush boosts rental supply with biggest increase in London 

•The rental market received a boost of 8% more new properties advertised to rent in Q2 compared to the same quarter in 2015, following the Q1 rush to buy property to let out before the stamp duty charges came in

•Majority of new properties were in London, up by 22% on the same period last year, resulting in a small drop in the region’s average asking price this quarter to just under £2,000 per month

•Despite the increase in supply, all other regions recorded a rise in average asking rents this quarter, with the East of England’s 5% annual change leading the way

•Rental enquiries up 2% in Q2 2016 compared to last year, and up 1% in the two weeks after the referendum compared to same two weeks in 2015, as the lettings market shows no immediate signs of Brexit impact.

I hope you’ll find this information useful. The next House Price Index will be released on 15th August, so please keep an eye out for it.