Property’s on the up despite Brexit hype

HOMEBUYERS are driving house prices to all-time highs as they shrug off alarmist claims that Brexit will sink the property market.

The Remain camp has warned of a house price meltdown if Britain exits the EU but property prices are telling a more optimistic story.

Despite Project Fear’s scaremongering and natural uncertainty over the outcome of tomorrow’s referendum, house prices continue to climb.

The property portal Rightmove.com has reported that asking prices have hit an all-time high just days ahead of the looming EU vote.

The price of the average property coming to the market has leapt another £2,320 in the last month alone to hit a record £310,471.

Housing market momentum and the desire to buy means that properties are now selling at the fastest ever recorded rate, with the average transaction taking just 57 days.

Rightmove director and housing market analyst Miles Shipside said prices have risen every month so far this year. “The uncertainty associated with the EU referendum has failed to halt this year’s upwards price momentum.”

Elections typically cast a shadow over house prices, with prices falling 0.1 per cent in the run-up to the May 2015 general election but Shipside maintains it is a different story this time. “The figures for the average time to sell indicate properties are being snapped up more quickly than ever,” he said.

He added that it would be understandable if people hesitated before putting their property on the market in the weeks before the referendum but there has been little sign of this happening either.

“The number of new listings is still about 95 per cent of the norm for this time of year, so the drop-off is relatively small in spite of what many call the biggest vote of our generation.” Brian Murphy, head of lending at broker Mortgage Advice Bureau, said: “While many said demand would slow due to the referendum the market is busy with prices maintaining an upwards trajectory.”

He said vendors remain confident of achieving top prices for their properties. “Although the referendum is tomorrow, this doesn’t seem to have yet impacted on market confidence. It would appear that for many, it’s business as usual.”

Last week official data from the Office for National Statistics showed UK house prices rising a healthy 8.2 per cent over the past year, with London prices rising 14.5 per cent.

PWC senior economist Richard Snook said: “The housing market still appears reasonably strong as we move into the summer, with little sign yet of a drag from uncertainty around the EU referendum.”

Simon Checkley, managing director of mortgage brokers Private Finance, dismissed fears that the market may cool if Leave triumphs tomorrow. “Homeowners should be reassured by the fact that such a cooling-off period is expected to be temporary whilst the market acclimatises to the changes.”

Lenders have boosted confidence by continuing to slash mortgage rates, with HSBC launching a two-year fixed-rate charging less than one per cent.

The deal is available up to 65 per cent loan-to-value (LTV) and carries a £1,499 product fee.

Rachel Springall, finance expert at MoneyFacts.co.uk, said: “This new 0.99 per cent two-year fix from HSBC is the lowest fixed rate available and the first sub-1 per cent fixed deal since our records began.”

The shortage of property supply, sky-high demand and record low mortgage rates should keep the housing market very buoyant whatever the outcome of tomorrow’s referendum.