Despite the EU referendum and a number of other factors, the UK’s residential property market continues to flourish and has outperformed the predictions that were set for the start of 2016, writes property developer Richard Carr.
According to analysis from Connells Group, the property market in the UK started 2016 at breakneck speed with more buoyant activity than the positive sentiment experienced during the final quarter of 2015.
Low interest rates and a number of economic factors has seen the number of active buyers entering the property market reach new heights. David Livesey of Connells explained to propertywire.com that the low interest rates has encouraged those on the fence to make their first move onto the property ladder.
However, the increase in demand has only further highlighted the country’s chronic housing shortage. The current level of stock in the UK is at a historic low and with buy-to-let investors looking to extend their portfolio ahead of the stamp duty increases, first time buyers face restricted choices and premium prices.
“Property remains a valuable asset that will continue to increase in value for the foreseeable future. Supply side initiatives, driven by the Government’s attempts to stimulate housebuilding in particular, may need further support if they are to have any meaningful impact on the level of available stock in the short term,” said Livesey.
Some analysts have claimed that the EU referendum is already starting to affect the country’s property market, however this latest report suggest that the economic outlook remains strong.
“There are some warning lights flashing in certain areas of the global economy and the current Brexit debate is leading to a degree of business uncertainty. The uncertainty is similar to that seen in the lead up to the Scottish Referendum in 2014 and the UK General Election in 2015, and whilst this may introduce some hesitancy to the market during the second quarter the fundamentals of the UK economy remain strong, with low unemployment, reasonable rates of GDP growth and rising real term wages,” said Livesey.
Richard Carr believes that regardless of the result from the upcoming referendum, the property market will always prosper. Demand for housing will continue to outstrip supply meaning the outlook remains positive.