Despite the many warnings and concerns that were raised ahead of the UK’s referendum in June about a possible collapse of the housing market, the industry has remained strong according to the latest analysis.
Many felt that investors may lose interest in the UK and be put off by the uncertainty created by the country leaving the European Union. However, since the referendum the number of residential properties advertised for sale in the UK has increased and average asking prices have reduced by 0.2%.
Other significant factors, include:
- Mortgage availability remains broadly unchanged
- Listing volumes of properties remains strong, with an increase of 3.6% since June
Ahead of the vote, some experts said that house prices would fall steeply if the country opted to leave the EU, however those claims haven’t transpired. A 0.2% drop is minimal and nothing in comparison to the movement in the prices of shares of the companies which service the UK housing market.
The figures are taken from an analysis report from a global investment banking firm.
Some of the most interesting figures relate to the changes made to asking prices, which indicates that UK homeowners are willing to move. Since the referendum the figure has increased by 5 percentage points from 29.3% to 34.5%.
Looking at the two previous recessions, London house prices were the first to fall and rise, however the report’s research shows that 76% of London postcodes have seen an increase of listings, whilst 70% have seen a reduction in asking prices.
“London has the largest rental market in the UK and we believe that asking rents provide the most cutting edge data point with respect to the health of the underlying housing market. Since the EU referendum 51% of London postcodes have seen an increase in asking rents, 48% a reduction and 1% remain unchanged,” the report points out.
It suggests that there is no housing recession yet. “The review of our post EU referendum high touch housing market data does not currently point to a UK housing market on the cusp of a recession. The current situation of rising listings and softening prices suggests that the UK housing market is functioning, albeit at levels below long run levels. If prices fell too much in the eye of the home owner we expect listings would be withdrawn,” the report says.