House price increases slow down as political uncertainty bites
Author: Karen Woods
Figures released by the Halifax showed that June saw a dip in the value of homes coming to market.
Property prices fell 0.3% between May and June, which has been attributed to buyers waiting to see the outcome of the Conservative party leadership race and how this will affect Brexit.
In June, the average house price was £237, 110, down on May. Fortunately for sellers, however, this figure is 5.7% higher than the same time last year.
Brexit, and the uncertainty around it, appears to be putting many people off selling their homes and while prices continue to soften, buyers won’t be encouraged sell up.
Those willing to look beyond Brexit, and the current political situation, are prepared to take a chance, but only if they can perceive value. Buy-to-let investors, meanwhile, are looking for bargains but will only buy at the right price.
On a more positive note, despite the political climate, the housing market is holding up. Demand is keeping the market ticking over with mortgage approvals just above the long-term average, but the number of available properties and, in particular, the shortage of house building programmes is continuing to restrict the market.
Karen Woods, head of conveyancing at Russell & Russell’s Chester office, said: “As a business we’ve never been so busy, although there does appear to have been an overall slowdown in the number of houses coming on the market in recent months. To be fair though, sales during the summer tend to start levelling off because it’s the holiday season, so that needs to be factored in to the equation. That said, both buyers and sellers will be requiring more clarity around Brexit and what the future holds to stimulate the marketplace."