What does Brexit Mean for House Prices?

Posted on November 22, 2016

Following the shock result to leave the European Union and a whole summer of uncertainty, Brexit watch continues into the New Year as many people looking to sell or buy question what our departure means for the housing market. There have been a number of headlines spouting doom and gloom then glory for UK house prices, but with so many opinions so easily spoken it can be difficult to get the facts we need about Brexit’s impact on property.

Here our Sunderland estate agents cut through the noise to give you the latest on the property sector post-Brexit.

House prices are stabilising

Whilst the bigger picture regarding under what circumstances we are to leave the EU is still a closely guarded secret of the government, the latest house price growth statistics suggest that the market is stabilising. UK house prices have actually risen, and are now 7.7% higher than the same period in 2015. The average house price is now £218,000 according to the latest data from the Office for National Statistics (ONS), which was an entirely unexpected outcome considering the Brexit vote and, prior to this, stamp duty changes that came into force during the new tax year.

In addition to the biggest house price increases being witness in (yes, you guessed it) London and the South East, eastern England also saw huge rises, and as a result the area is the fastest rising region in terms of its house prices.

Property sales continue to fall

House prices may be rising but don’t get out the champagne just yet if you are looking to sell your property. The number of property sales are falling, and these lower levels are likely to continue as we welcome the New Year. Whilst buyer confidence is returning, the uncertainty of where the country will be in months’ or years’ time means buyers are more cautious about where they spend their hard earned money, and making a huge investment like purchasing a property is a scary feat for many.

Into 2017 and beyond

Whilst house price growth continues and demand cools, house prices are predicted to become subdued and remain flat until 2019. The uncertainty over Brexit negotiations is having a huge impact on the property market, however that being said, while uncertainty does indeed loom, experts see little risk of large corrections or changes to current house prices. The latest forecast predicts slow growth for the North East in particular making it a very affordable place to buy, with house price growth set to stabilise by 2018 and grow by 1 to 3% by 2020.

If you’re thinking about buying or selling your property but are a little uncertain given the current economic climate, why not pop into the branch and have a chat with one of our friendly team who can provide you with the help, guidance and advice you need to make an informed decision.