Property sales down 0.9% in month after Brexit
Property sales in Britain dropped marginally between June and July of this year, (post-Brexit vote), according to the latest data released by HMRC.
A fall of just 0.9% was recorded month-on-month, with fears of a more substantial drop following the Brexit vote proving unfounded.
Year-on-year however, there was an 8.3% decline in transactions.
Estimations
The seasonally adjusted estimates of non-residential property transactions fell by 7.5% between June and July, 1.7% down on the same month last year.
In addition, the report shows that there was a large rise in transactions in March, in comparison to a sharp reduction in April. This can be attributed to the introduction of higher stamp duty rates on additional property that came in on April 1st.
Andy Sommerville, director of Search Acumen, suggests that the statistics show the market is stabilising. He notes that, ‘many would have expected a sharp fall in transaction activity in what was the first full month in our post-referendum economy, yet an underwhelming change suggests the darkness in our market shows little sign of worsening.’[1]
‘Despite the encouraging resilience the market has shown in the short term, the bigger picture reveals an 8.3% decrease in transactions since July last year, demonstrating the true hit we’ve taken from Brexit, combined with the underlying issue of affordability. As our economy absorbs the shock of the past three months, it is positive that home buyers are being given a leg-up into the property market to reignite demand and boost our industry,’ he added.[1]
Property sales down 0.9% in month after Brexit
Stable
Doug Crawford, chief executive officer of My Home Move, said that the data shows that the property market has shook off the uncertainty of the Brexit vote.
He observed, ‘following the referendum there was talk that the market would be quickly affected by the outcome, but these fears have been allayed with residential transactions falling by just 0.9% month-on-month. While transactions levels remain lower than a year ago, this is in the context of a market that is still feeling the effects of changes to stamp duty, which led to a frontloaded first quarter.’[1]
‘The figures reflect our own experiences of the market. Following the referendum the vast majority of purchases went ahead without any issue, and chains were largely unaffected. In the medium term the market will remain stable, and our view is that it is strong enough to weather mild economic uncertainty.’[1]
Concluding, Crawford said, ‘In the long term, strong fundamentals will continue to support a prosperous housing market. High levels of demand for both rental and owner occupied accommodation will drive transaction figures upwards, and our recently published forecast predicts the number of property transactions will rise by 20% by 2020.’[1]
[1] http://www.propertywire.com/news/europe/uk-sales-post-brexit-2016082312298.html
