An interesting new report from London based estate agent, Jackson-Stops & Staff has revealed there has been little change in the property market post-Brexit.
The investigation shows that despite a marginal weakening, reports of a crisis are wide of the mark.
Referendum resilience
The estate agent took data representing 90% of the entire UK property market on the 22nd June, the day before the historic vote took place.
Results from this data showed there were 866,179 properties for sale. Of those, 352,301 were under an agreed offer, making up 40.7% of the market.
Jackson-Stops & Staff undertook the same investigation on Monday (8th August.) Key results from this research show:
- The total number of properties on the market, including those under offer, has risen by 1.7% to hit 872,953
- The total number of properties under offer has dropped by 4.3% to 335,176. This is 38.4% of the market, showing a 2.3% since 22nd June
- Average asking prices for property in Britain have risen to £1,040-from £20,470 on 25th July to £241,510 on 8th August
Property market shows referendum resilience
Seasonal slowdown
Nick Leeming, Chairman at Jackson-Stops & Staff, notes, ‘whilst the market has weakened slightly followed the Brexit result, we usually see a slowdown in activity over the holiday months and these figures suggest we are yet to see a property crisis. Although agreed offers have marginally decreased, many thousands of buyers are still making offers to buy homes in the present economic environment. As a result, many sellers are feeling confident, demonstrated by the fact that asking prices themselves have not fallen-and have in fact seen a moderate increase.’[1]
Analysis of properties under agreed offer or sold subject to contract signing indicates that the average house price currently stands at £232,699. This is 3% lower than the average of all properties just two weeks ago.
The asking price of all properties on the market that are not under offer or sold is currently £247,026. This is 3% higher than the typical price recorded two weeks ago and suggests sellers with agreed offers were more realistic in pricing their property.
No decline
Leeming concluded by saying, ‘while sellers may have to drop their asking price a little to get an agreed offer, there is no evidence of sharp house price decline nationally. Indeed, sellers accepting an offer 3% to 5% below asking price is normal in a healthy housing market.’[1]
‘Despite the scaremongering being issued by a number of gloomy commentators, these figures show that the housing market continues to remain remarkably resilient. There is life after Brexit-the housing market is driven by need and these needs continue to motivate thousands of buyers.’[1]
[1] http://www.propertyreporter.co.uk/property/there-is-life-after-brexit-and-its-the-same-as-before.html
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