The impact of Brexit the real estate market in the UK will see only a few months

Prices for residential property in the UK rose 0.2% in July and 5.5% in the year to £293318. If to compare with February of 2016 , when annual growth was 8.9%, we see a significant slowdown in prices. The quarterly figures show a 20% decrease in the number of sales.

The East of England is the best region, with annual price growth of 9.3%. It is followed by South-East with a growth of 7.2% and London with an increase of 6%.

Inflation in the property market in the UK begins to slow down: in June, price growth was 0.5% in July to 0.2% , which is approximately £700. Average prices are now £3386 below their February peaks, but at £15422 above their July levels last year.

Currently, the market is influenced by different events and it is too early to talk about the impact on the real estate market in the UK of the decision of the British to leave Evrosojuz. More noticeable influence of the increased 3 per cent Stamp duty for investors. Deal with the property in the land register are recorded within a few months and now we can see only transactions completed before the referendum.

Despite the slowing of inflation, the number of transactions since March is growing , which indicates a good activity for both sellers and buyers. After 1 April 2016, has significantly reduced the number of objects sold in the upper price segment, but increased the number of objects in a cheap housing sector.

The impact of Brexit will occur in specific numbers in the next few months, but it is unlikely that the decision of the British to withdraw from the European Union will contribute to lower prices. Pressure on prices, especially in the sector of affordable housing, has the depreciation of the pound sterling, the decline in the base rate of the Bank of England and the chronic shortage of new properties for sale that is felt in most regions. We should not forget about the significant regional differences in the market of real estate of England.

® Alice Morgan. 15.08.2016

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