The newspaper you read will probably have an influence on whether you believe the Housing Market in the UK is:
- performing better with the Brexit vote or
- struggling and in decline because of the Brexit vote.
Either way, the market post 24th June 2016 (post Brexit) has been in “wait and see” mode and will probably remain in this state until the new year when there will be a decision on the High Court ruling which take place on 5th December and is expected to last 4 days. It is the view of Sally Asling, Letting Director at SurreyLets that the Housing market will continue to remain in “wait and see” mode until article 50 is served and negotiations to exit truly begin.
So what is a “wait and see” market?
In real terms it means there is a lack of activity unless there is a real need to make a move. Death, Divorce being the two main ones in Sales and Job Relocation/ Being served notice are the two main ones in letting. If there is no driving need, people are just waiting to see how laving the EU pans out and what the market will do, and this of course becomes a self fulfilling prophecy: a general lack of activity leading to what feels like a market slump because its slow. This aside, what is actually happening to House Prices?
As I write a week or so into November, the latest statistical information we can draw upon takes us up until the end of August 2016 just 8 weeks after the Brexit decision, which isn’t really providing enough of a time lapse to see how the housing market has been affected if it has at all. However, there are encouraging facts in this data that should restore consumer confidence especially if these trends continue which may serve as some encouragement for homeowners thinking of selling but whom are “waiting to see”
House Prices have been in continual growth in 2016
Housing market indicators for August suggested a period of relative stability during the month. House prices grew by 8.4% in the year to August, up slightly from 8.0% in July.Prices in the UK continues to rise with the greatest increase for the year being the East of England with a 13.3 annual change followed by the South East wit
h a 12.2% rise. England as a whole saw a 9.2 rise.
I accept that sales agreed, pre-Brexit were possibly just going through to completion, but this is still encouraging. No major price drops as a direct result of Brexit – which I have seen claimed in some scaremongering newspapers.
Shortage of stock on the market
Its clear that up until June there was a lack of stock on the sales market. Looking at data for June 2016 and comparing it to June 2015 England saw a 32.2% drop in the number of units sold.
Overall, year on year, June 2016 shows a decline from the previous growing trend of properties being sold.
A direct conclusion therefore could be drawn that whilst there is not the volume of property as in previous years on the market, and therefore not so much competition for your home, this has kept house prices rising.
In terms of housing demand, the volume of lending approvals for house purchases fell slightly in August compared to July, remaining at levels seen in early 2015. Home sales in the UK stayed stable between July and August but remain below levels seen in 2014, 2015 and before the stamp duty changes in early 2016. The Royal Institution of Chartered Surveyors (RICS) market survey for August reported falling new buyer enquiries over the past three months, with demand from buy-to-let investors falling more sharply than demand from first time buyers and existing owners.
Latest news from Zoopla – for KT24
Zooplas Z-index is the current average Zoopla estimate of home values in a given area, and the Z index report for KT24 is £1,034,686. Zoopla shows a month on month rising trend.
The average house price paid in the last three months 17 sales is £998,703.
Fun housing facts for KT24
Highest value streets Zed-Index
The Warren £2,122,830
Beech Avenue £2,096,434
Woodland Drive £1,996,802
Pennymead Drive £1,834,411
Lynx Hill £1,828,226
Highest turnover streets Turnover
Fearn Close 45.5%
Station Approach 42.9%
Tintells Lane 41.2%
Little Cranmore Lane 36.4%
Parkside Close 33.3%
SurreyLets keep a keen eye on what property values are doing in the area as whilst SurreyLets are not an Estate Agency involved in the sale of property, SurreyLets regularly consult with Landlords who which to withdraw equity on their buy-to-Let investments and assist Investors making smart decisions on their portfolio growth.
If you have a property to Let, are considering Letting out your property or would like help and advise in buying an investment property, Sally Asling would be delighted to have an informal, no obligation discussion with you. Please call 01483 282470 or e-mail email@example.com
Data taken from the UK House Price index summery published 18th October 2016 from UK.Gov’s official statistics and from Zoopla.