South West house prices fall in July
The latest figures released by Rightmove show that the average price of a residential property in the South West fell by 0.4% in the month of July. The fall saw the average asking price for a home in the South West drop from £302,022 in June 2016 to £300,904 in July this year.
Whilst this will be seen as good news by buyers, vendors may not be quite so happy!
Some of you may recall our blog from earlier this month looking at the effect that Brexit had on the residential property market in the immediate aftermath of the EU referendum. In that blog we postulated that the slow down in the housing market nationally was perhaps due to a reluctance by vendors to bring their property to market due to the uncertainty around the economy post Brexit. The evidence of this is still with us with. Estate Agents across the country are reporting that the number of properties on their books is down by 16% on 2014 levels for instance. However, very few are reporting sales collapsing as a direct result of Brexit which is in itself good news.
For the vendors that do decide to bring their property to market the good news is the lack of housing stock for sale means that the level of enquiries per property remains high.
There are even signs that, in the last couple of weeks, the number of properties being put up for sale has increased again, perhaps indicating that the market is adjusting to the result of the referendum.
One potential benefit of the referendum, and the subsequent change of political leadership, is that there appears to be a commitment for a root and branch review of the structural housing deficit which should lead to a long-term commitment to build more affordable homes. This is particularly important in the South West where affordability of homes by local people is a major concern across the region.
Without a doubt the area of the country most affected by the EU referendum continues to be Greater London with property prices there falling by 1.2% in the last month alone reducing the annual percentage growth of property in the capital to just 3.3% compared to 5.2% for the South West over the same period. This difference in growth coupled with the fact that the average selling price of property in the South West is less than half that of London continues to make the South West look like good value for money when considering an investment.
Given the significantly better quality of life to be had in the West Country also this makes it a win/win situation.
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