New figures suggest slowdown in housing market ahead of Brexit vote
With the upcoming referendum in June regarding the UK’s position within Europe, following on from buy-to-let stamp duty shockwaves, the housing market is facing its greatest slowdown in over a year according to new polls by RICS and Halifax.
It is not uncommon for buyers and sellers alike to become wary and distrustful of the market during elections, and the Brexit vote is no exception. While many estate agents have posted record figures for the first quarter of 2016, now that George Osborne’s stamp duty hike has come into force, the market now faces the prospect of stagnation as the feeling of uncertainty increases amongst consumers.
The Royal Institute of Chartered Surveyors (RICS) still forecasts an overall rise in property value at 4% a year over the next five years, but the slowdown in price rises throughout 2016 could have unexpected and potentially unwelcome consequences for many who work within the sector, as well as those looking for a fast house sale. Many house building companies in the FTSE 100, including Persimmon, Barratt, and Taylor Wimpey, have already seen a drop in share prices up to 6%, despite an uptake in sales across the board.
According to RICS, the greatest impact will be felt in London, as EU investors bide their time waiting for the outcome of the Brexit vote, with properties worth over £1m facing the bleakest outlook.
“The EU referendum is likely to be an influencer in terms of the damper outlook for London in particular.” Said Simon Rubinsohn, chief economist at RICS. “However, all indications suggest that whatever the outcome of the forthcoming elections and referendum, in the long term, the imbalance between demand and supply will still exert a strong influence on the market.”
For those who need to sell in the next six months, the slowdown could not come at a worse time as buyers are hedging their bets that they may enjoy cheaper prices if the Brexit ballot returns a ‘yes’ vote. Luckily, there are property buying companies who are willing to buy any house for cash, with competitive offers that allow those looking to sell their homes to enjoy a fast, efficient sale – without having to endure the lengthy process often associated with estate agents.
Are you worried that the Brexit vote will affect your house sale? Just ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property