The former chancellor George Osborne may have predicted pre-Brexit that UK house prices could take an 18% hit over the next two years if the UK voted to leave the EU, but despite the initial economic shock since the outcome of the referendum, the UK housing market has remained relatively stable, fresh analysis shows.
Some 40.7% - 352,301 - of the 866,179 homes available for sale nationally the day before the Brexit vote are now under offer, according to the study of Rightmove data by Jackson-Stops & Staff.
Moving forward to 8 August and the total number of homes on the market increased by 1.7% to 872,953, while the number of residential properties under offer dropped 4.3% to 335,176. Yet, at the same time, the country’s average asking property price rose by £1,040 – from £240,470 on 25 July to £241,510 on 8 August.
Nick Leeming, Chairman at Jackson-Stops & Staff, commented: “Whilst the market has weakened slightly following the Brexit result, we usually see a slowdown in activity over the holiday months and these figures suggest we are yet to see a property crisis.
“Although agreed offers have marginally decreased, many thousands of buyers are still making offers to buy homes in the present economic environment. As a result, many sellers are feeling confident, demonstrated by the fact that asking prices themselves have not fallen – and have in fact seen a moderate increase.”
For homes under offer or sold subject to contract, the average price is £232,699, 3% lower than the average of all properties two weeks ago.
Looking at only the average asking price of all properties on the market, but not under offer or sold, shows an average asking price of £247,026. This is 3% higher than the average for all properties two weeks ago, suggesting that sellers with agreed offers have been more realistic in pricing their properties than those without an agreed offer in place.
Leeming added: “While sellers may have to drop their asking price a little to get an agreed offer, there is no evidence of sharp house price decline nationally. Indeed, sellers accepting an offer 3% to 5% below asking price is normal in a healthy housing market.
“Despite the scaremongering being issued by a number of gloomy commentators, these figures show that the housing market continues to remain remarkably resilient. There is life after Brexit – the housing market is driven by need and these needs continue to motivate thousands of buyers.”