When the UK voted to leave the European Union in a historic referendum back in June, many business leaders and politicians became concerned at the impact this result would have on the country. Jobs, growth and trade were all discussed. However, one of the main talking points of the debate was how the UK property market would fair.
We are almost six months on from the referendum, and the property market is still quite turbulent, so is it possible to accurately predict what is going to happen to the property market as we head into the New Year?
What happened to the property market after the vote?
Brexit was a step into the unknown, so it’s no surprise that there was a huge amount of uncertainty among the general public in the days after the vote – especially in the property market. In the 12 days that followed the vote to leave, the cuts to asking prices for homes in London rocketed by 163%. This was partly down to the fact that sellers wanted to rush through their sales and get some money in the bank before the economy crashed – something that didn’t happen.
Out of all the regions in the UK, it seems that the London property market was one of the hardest hit. In fact, the number of completed sales on properties in and around the Capital fell by 18% in the days leading up to the vote.
Has the property market improved as the months have progressed?
The fall in sales was to be perhaps expected after such a monumental event. However, it appears that the economy is now getting back on track after recovering from the initial shock. In August, the average UK house price rose by 0.6%. In September, that growth fell to 0.3%, taking the annual pace of growth down to 5.3%. Now, in October, month-on-month house prices have remained the same, but price growth has slowed even further to 4.6%. However, Nationwide say that this figure is still in line with 2015’s growth rates, suggesting that the property market is beginning to stabilise.
What does the outlook look like for the UK property market?
In truth, it’s hard to say what Brexit means for the UK property market because we are yet to leave the European Union. We will only do so once Article 50 has been triggered, and it is still unclear when this will happen. There are some reports going about that say Theresa May is planning to start the process early next year, but a landmark ruling, which says that MPs may be entitled to a vote on Britain’s exit, could mean that we don’t actually leave the European Union at all.
However, one thing that you can be sure on is that the property market will remain uncertain until concrete plans have been put in place.
If you’re selling inherited property, then you may be able to avoid some of this turbulence by trusting a company like Probate Purchasers to buy your home. You will get a quick, fair price and a guaranteed sale – and these are three things that cannot be guaranteed in the current UK property market.