After the vote for Brexit, many people had predicted that it would trigger a slowdown in the property market. However British house prices have since increased at their quickest annual rate in four months in July.
A report by Nationwide has stated that house prices increased by 5.2% in July, up from a 5.1% rise in June despite predictions that it would only increase by 4.5%.
We may have to wait for the full impact of Brexit to be seen however as these figures are based on property prices at the point at which buyers are offered mortgages. This is something which occurs with a short lag after a decision to buy a property.
Further good news was announced by Taylor Wimpey as they announced that the vote to leave the European Union had not had any impact to its trading; they reported a rise in profits for the six months to July.
In a statement the company said that since the referendum the early forward confidence indicators among homebuyers, together with the continued competitive lending by mortgage providers, have been promising and show continued confidence in the strength of the UK housing market.
Similar trends can be seen in the rental market which has broadly remained calm after Brexit contrary to predictions made leading up to the vote on the 23rd June.
Other prominent players in the development sector have commented on the market reaction to Brexit. The managing director of the Association of Residential Letting Agents (ARLA), David Cox, has noted that there was no immediate post-Brexit fallout to the rental market despite the current state of economic and political uncertainty. But as always it is hoped that the new administration under Theresa May will provide some clarity on housing policies to help inject further confidence into the sector.
David Cox has commented on some hesitation from landlords but has stressed that this is relatively mild and urged the importance that they do not act in haste. He remarked that if one thing is clear following the vote for Brexit, it is that supply and demand remain a real issue in the rental market.
