HM Revenues and Customs data suggest that there has been a small increase with 109,630 properties being bought in the UK in August. Additionally, the latest figures from Hometrack show that the growth of annual house prices dropped by 8.2% last month. It was apparent that quarterly growth was also at the lowest level it has been in six months.
For example, Aberdeen’s annual inflation was at an all-time low coming in at -6.7% during August. Bristol recorded the highest annual growth, which was 13.1%, making the city’s average house price £256,100. Liverpool witnessed the most promising quarterly growth at 4.1%, and London recorded annual inflation of 10.4%, with quarterly growth at 0.9%.
The proportion of houses in which the buying process was commenced before the referendum is as yet unknown. Top economists are observing to see if any trends emerge as indicators show a slowing of post-vote mortgage data.
According to The Royal Institution of Chartered Surveyors (Rics), house prices and sales were expected to rise in the coming months following the appearance of figures settling down, with the lack of new developments being cited, as the main impacting factor. Additionally, a separate report compiled by Jackson-Stops & Staff claimed the UK property market was ‘peachy’ following the referendum. An analysis of figures from Zoopla confirmed the claim with the number of properties on the market increased over the last three months.
For many years the UK housing market has come under fire from critics for being on the whole inaccessible to first-time buyers, a large proportion of whom find it near impossible to get on the ladder. Only time will tell if this situation is likely to alter in the wake of the new legislative and procedural changes resulting from the vote to leave Europe. Many years of legislation and procedures have now been undermined as a result of the exit, the ramifications of which are not yet fully known.
It is now a matter of patiently observing trends over the coming months to see how the situation progresses. For the moment, it is somewhat positive.
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