Transactions are expected to slow rather than house prices fall in the wake of the EU vote, says Hometrack.
Richard Donnell, director at the property analyst, said: “At present we expect housing market turnover to bear the brunt of increased uncertainty rather than house prices.
“Standing back from the immediate turmoil in financial markets, the reality is that the fundamentals of the housing market remain unchanged with record low mortgage rates and a wide imbalance between supply and demand.
“The UK doesn’t have a problem with housing demand. The more important question is how many buyers and sellers feel confident to participate in the market in the near term.”
He was speaking after Hometrack reported that Bristol has become the first city outside of the south-east to see house prices rise at a faster rate than London for more than six years.
Year-on-year house price inflation in Bristol reached 14.1% in May to £250,900, surpassing London growth at 13.8% to £472,100 and Cambridge which was up 13.4% to £410,200.
London was one of eight cities to register slower year on year growth, slowing from 14.2% in April to 13.8% in May.
Large regional cities have registered the highest growth rates over the past three months, led by Liverpool where prices have grown 5.4% to £112,800.
Overall the top 20 cities analysed in the index saw house price inflation rise from 10.8% in April to 11.2% in May.
But this could all be set to change following the EU referendum result.
Donnell said: “House price inflation in major cities outside of London and the south-east, such as Bristol and Liverpool, has been accelerating but it is now expected to slow towards low single digits in the coming months as demand cools on the back of the EU referendum result.”
Let’s keep shouting doom and gloom from the rooftop and we can be certain it will happen.
Come on everyone we all know that for the longer term, property is a sound investment and the market will move on. From1990 to 2016 in many parts of England property prices rose over 300% despite in that period 2 deep recessions ’90 to ’93 and 2007 to 2010 that saw drops of nearly 30%.
Let’s start talking positive and reinforce the public belief in property for the longer term. I say this as I truly believe it’s in the interests of the home owning/ buying public. Many could be diverted from doing anything because the advisor they listened to was the guy who was propping up the bar with a loud negative voice.
Are we we as an industry going to be outsold by a drunk? No we bl**dy well are not. Get out there and get positive.
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We can shout all you want but the general public will seevit as self serving. What are estate agent trust ratings again?
The upside to this type of story is that companies that need high turnover due to low fees are going to be well and truly stuffed!
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Amen to that Bruv!
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I’ve an idea, as we all know Purple Bricks Trust Pilot rating is 5* so perhaps they could do it?!?!
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It’s been very quiet on here since Thursday, I can only presume those agents who need high turnover are stuck in the loo $****ing themselves.
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It’s just under 12 months until this then: “the Brexit chaos is responsible for us not turning a profit yet, otherwise obviously we would have done, so if you’ll just crowdfund us some money / issue some more shares, then obviously we will turn a profit next year, like we said we would have done by now.”
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Can someone tell me exactly what an analyst is; what one does; and what earthly purpose one serves?
So far I only see three superfluous letters on their ‘title’ – unless you can enlighten what meaningful purpose the ‘y’, ‘s’ and ‘t’ are actually serving there…
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