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At the 2016 G7 summit in Japan, the then chancellor George Osborne said a vote for Brexit would have a sharp negative impact on house prices.
He believed that in the long term, the people in the country were going to be poorer, with just the vote to leave the EU impacting the value of people’s homes. The Treasury claimed the value of people’s homes would decrease by at least 10 per cent and up to 18 per cent.
But despite the growing sense of uncertainty surrounding the UK’s exit from the EU, the property market has demonstrated a resilience and strength that has surprised experts, as new research suggests Brexit hasn’t had the catastrophic impact that was first predicted.
According to the Office of National Statistic’s (ONS) UK Property Transactions figures for April 2019, seasonally adjusted residential transactions fell by 0.3% between March and April but increased compared with the same period last year.
Although London and the South East of England have been struggling recently, 99,420 residential property transactions were finalised in April, which represented a 0.8% increase on 2018.
These figures represent a steady five-year growth, success which is also shared by the non-residential property market, as transactions increased by 9.5% between March and April and 7.1% compared with last year.
The rate of growth in average house prices may have slowed, but the trend is still upwards and in January of this year stood at £228k, an increase of 8 per cent from the £211k average price in May 2016, when the Chancellor made his dire prediction.
With both the residential and commercial property markets showing signs of improvement and standing firm despite ongoing uncertainty, it makes positive reading for those looking to invest.
While it may be difficult to determine market performance following Brexit, the early signs should give people confidence that the markets are resilient enough to cope with change, regardless of the outcome.
This detailed research from the ONS shows that property transactions statistics offer a better insight into the market’s health than house price data, which can be volatile and less likely to offer a clear picture of annual progress.
The strength of the market reflects the desire of lenders to supply the necessary funds and there are some very attractive rates to tempt borrowers with the confidence to buy.
With property prices falling in some areas and the rate of increase slowing in others, there will undoubtedly be opportunities for investors to snap up a bargain or two.
The statistics represent a strong period for the UK’s property market, but it still pays to consult an experienced legal team before making any decisions.
So if you are in the market to invest in property and need a reliable independent conveyancer, with the experience to make it happen, then please get in touch today and talk to Julie Tomasik on 01543 267988 or email firstname.lastname@example.org