As Confidence also Rises Again
Following the unexpected EU Referendum results, the UK housing market has been on go-slow. However, in August 2016, performance has started to pick up across the board, and house prices are slowly on the rise. This is largely due to a shortage of available houses for sale, but regardless, it’s good news if you are selling.
This article does not constitute advice.
Professional advice should be taken prior to acting on any part of it.
Rising house prices
Property owners across the UK were filled with fear and confusion following the Brexit result on 23 June. Would their investments devalue overnight? Would their homes be under threat if there was a collapse in the market?
Similarly, those hopeful first-time buyers were also left in the dark – would their dreams never become a reality?
However, despite a rocky road of uncertainty, there continues to be a shortage of properties for sale, which is, at least for now, enabling house prices to stay afloat. This is reason enough to give homeowners renewed confidence.
“Demand is high and supply low, creating a facility for home owners to keep prices high” Chris Spurgeon
In August 2016, house prices rose 5.6 percent on the same month in 2015, and rose 0.6 percent from July 2016.
Looking to sell your property?
If you are looking to sell, then this small rise in property prices could be a glimmer of light for you.
It may be a case of striking now whilst the iron is hot, to take advantage of the high demand and low supply.
First-time buyers are still edging onto the property ladder, albeit that they continue to struggle to meet inflated house prices.
Property investors now face the additional Stamp Duty charge, which is deterring some people. There was a surge in investment property purchases prior to April 2016 when the tax charge was implied, and many investors are now looking for alternative ways to keep growing their property portfolios.
Nevertheless, confidence appears to be improving in the market, which is supported by GfK, market research organisation, who reported their confidence score rose to -7 in August, up from -12 in July.
Whilst August’s result was still the second lowest level since 2014, July’s confidence result was the sharpest fall in 26 years!