Brexit: are we now on the home straight?
As the impact of Brexit continues to be felt, what’s around the corner for the property market?
June’s vote to leave the EU led to warnings of a cooldown in the housing sector.
It was certainly a sluggish summer but, a few months down the line, we’re starting to see signs of recovery.
Here’s a look at what’s been happening – and where the market may be headed.
What have reports been saying?
It’s been a bit of a mixed picture following Brexit. Figures from the Bank of England showed the number of mortgage approvals made to home buyers fell to its lowest level for 18 months in July.
But another index, from Nationwide Building Society, found house prices increased by 0.6% month-on-month in August to reach a new record high of £206,145 across the UK.
What’s housing market activity been like so far?
Several reports pointed to activity slowing down over the summer. A Carpetright survey of more than 2000 people in August found two-fifths (41%) of people had lost confidence in the property market.
How much of the drop-off in activity was due to the Brexit vote?
It’s still early days – and there were already signs of the market slowing down before the vote.
The summer holidays are also traditionally a quieter period in the housing market.
Why have house prices continued to climb, according to some reports, despite the quiet market over the summer?
Experts have put this down to the balance between demand and supply in the market remaining tight.
Buyers’ lack of choice is helping to underpin house prices.
Are there any glimpses of activity picking up now we’ve moved into autumn?
Property website Rightmove saw a month-on-month jump in asking prices in September.
The average price tag on a new property coming to market increased by £2277.
This partially offset a decrease of £6249 in asking prices seen across July and August.
The Royal Institution of Chartered Surveyors recently said there were signs that housing market confidence was picking up.
So what’s next for the housing market?
Experts believe much will hinge on how the jobs market holds up and how confident people feel about making big purchases, such as buying a house.
With the Bank of England base rate having been chopped to 0.25%, many people are benefiting from cheaper mortgage costs, which should help to support the market in the coming months.