Samir Salya looks at Brexit and the UK’s property market

It appears that the housing market in the UK is successfully moving on from the wider concerns related to the economy following the referendum results.

There are now more buyers and sellers in the housing market compared with the same time last year, and the number of sales agree in June 2017 was 4.6% higher than in June 2016.

According to Rightmove, more than 45% of property stock on estate agents’ books is SSTC (sold subject to contract). The same data shows that cumulative sales agreed during 2017 are almost the same as in 2016 and are down just 0.4%.

UK market still strong

Now we’re more than a year on from the Brexit vote, it seems that the fundamentals in the UK’s housing market are still strong. Although there have undoubtedly been wobbles in the market, and some cynicism in the media, it looks as though the chronic shortage of houses in the UK, relatively low unemployment and low interest rates are all combing to beat any Brexit worries.

Rightmove’s data was analysed during a traditional quiet time in the market, when buyers and sellers generally take a break. This has led to a very slight dip and the overall market has risen by just 0.1% over the last month.

This information includes a drop in house values for first time buyers outside of London, but there still isn’t much consolation for first time buyers looking to try and get their first steps on the ladder.

National average up

While the national average price of property for first time buyers has dropped by 1.7% in the last month (to £196,450), it’s still 3.8% higher than 12 months ago.

However, it’s clear that many people just can’t afford to buy, meaning that prices are held back to a degree. All regions in the UK have seen some kind of price rises year on year, the national average has only increased by 2.8% to £316,421.

A report from the Royal Institution of Chartered Surveyors (RICS) has also warned about the supply problems. Data from RICS shows that the average number of properties showing up as available per agency is at an all-time low of just 42.

Average time to sell

A good barometer of the stability of the market is how long properties take to sell. The average time to sell houses in the UK stays at around 60 days, the same it has been for the whole of the year.

All of these elements put together seem to show a steady and calm UK property market. It’s possible that consumers who were holding back due to political changes have now simply decided to get on with it.

Greatest price rise in West Midlands

Rightmove’s report shows that the West Midlands has had the biggest price rises in England and Wales so far this year. Prices in this central area of England are 6.1% higher than 2016.

The second-best area for price rises is the East Midlands, with a growth of 4.9%. Next comes Yorkshire and Humber with 4.1%. Perhaps unsurprisingly, Greater London has had the lowest growth of fall regions outside of central London at just 0.9%.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing.