"Already lower interest rates promised by the Bank of England to stave off any slowdown are set to ease affordability and support prices."
However London’s house prices fell by 1.4% (£8,400) month-on-month – the largest fall since May 2011.
Year on year, prices have risen by 6%, with the average house sale now reaching £293,444. The east of England saw the largest growth, with 9.4% annual increase.
Additionally, transactions in the three months to June increased by 8% compared to the same period in 2015, however these figures reflect the huge market surge ahead of April’s Stamp Duty changes.
In June 2016, an estimated 72,000 sales were completed, 13% lower than in 2015, but up on the 55,250 figure for May 2016, highlighting that the outcome of the June 23 vote has thus far had little effect on confidence in the market.
Adrian Gill, director of Your Move and Reeds Rains, commented: “Brexit will undoubtedly have a wide range of consequences for the housing market, however, it would be wrong to assume that these will all be negative. Exactly how the implications will play out in the sector over the coming months is yet to be seen, and whist London is likely to feel the effects more acutely, it is important to remember that the outlook is not all doom and gloom. Already lower interest rates promised by the Bank of England to stave off any slowdown are set to ease affordability and support prices.
“What is clear is that the impact of April’s Stamp Duty increase has now largely played out, and there’s little evidence to suggest it has significantly hit investor appetite: first time landlords seem no less common and there’s new interest in mixed commercial and residential purchases, such as flats over shops that escape the increase.
“Ultimately, with interest rates set to remain lower for longer, the Bank of England reducing banks’ capital requirements and changes in Government imminent, the short-medium term outlook for the housing market could well remain positive after all.”
