Brexit and the South West Housing Market
There are many possible economic results of Britain’s decision to exit the EU, many of which won’t be known for months or even years to come. However, the Monthly National House Price Index published recently by Rightmove shows some immediate impacts on the residential housing market.
It would appear that owners of larger properties (4 bed plus) have been reluctant to place their homes on the market in recent months. Year on year comparisons show that 6.6% fewer properties came onto market during June when compared to the same month in 2015.
The referendum doesn’t seem to have affected the willingness, or need, to purchase in the same period though, as the average time to sell a residential property has reduced to 57 days compared to 60 days the previous month and 65 days for the same period last year.
This would appear to be due to the fact that there are more buyers than sellers and therefore competition for the few properties that are on the market is fierce.
This is also reflected in the price achieved for buyers which increased 0.8% nationally in June.
In our area, the Westcountry, the increase was 1.4% for the same period which has resulted in an annual increase in average house prices of 5% in the last year.
This is in sharp contrast to London which saw a 0.2% decrease in average house price in June 2016 and an almost unprecedented annual increase of only 4.8%. Last year this was in the region of 15-18%!
All this means that the Westcountry really does represent great value as a property investment location.
If you are looking to buy in the South West though expect there to be stiff competition especially in the lower to middle part of the market.
All the more reason to use a property Search Agent to give you a competitive edge. Remember, we can provide access to the “off market” property sector as well as driving the best deal possible for you on openly marketed properties.
[contact_bank form_id=2 show_title=true show_desc=false]