A Yorkshire estate agent has warned anyone thinking of selling their home not to put too much store in reports of a post-Brexit property slump.
Ahead of the historic vote at the end of June, pundits and even former Chancellor George Osborne were warning of serious consequences if Britain voted to leave the EU. Once the result was confirmed, some gloomy agents – particularly in the capital – were resigning themselves to a collapse in house prices.
However, the reality so far has been somewhat different with only a marginal impact while a number of usually reliable property sources have been at odds with other more pessimistic elements of the market, predicting only a short-term dip while the UK adjusts to its new position in the world.
Just last week, Nationwide’s own index actually recorded a slight rise in property prices in July.
In his latest blog http://www.esaleuk.com/beware-the-brexit-doomsayers/ Esaleuk.com MD David Rook is also adamant that post-Brexit doom and gloom is largely unwarranted.
“What we need to remember is, when it comes to house prices, no one is dealing in cold, hard fact,” he said. “It’s mostly conjecture and the truth of the matter is that no one knows for sure what your house will be worth at Christmas time. There are just too many variables.
“It is therefore hugely frustrating to listen politicians – and even fellow property professionals – damaging public confidence by forecasting that house prices are on the edge of a precipice and edging ever-closer to a dramatic decline.
“Guess what? If you tell enough people often enough, it’s likely to become a self-fulfilling prophecy.”
In a recent report issued after the Brexit vote, the Royal Institute of Chartered Surveyors estimated, by 2021, homes will be worth 14 per cent more than they are today while the Council of Mortgage Lenders also reported a 16 per cent surge in lending in June.
Mr Rook added: “Caution is understandable in the current climate and it’s perfectly normal in the wake of an election for buyers and sellers in the property market to adopt a watching brief while they assess the lie of the land. It’s also normal for things to stagnate a little in the summer months as people take their annual holidays.
“The shock Brexit result may well be exacerbating that and price rises may have stalled a little more as a result.
“However, as events unfold over the remaining summer months and the UK returns to a more even keel, there’s every chance – left to their own devices – property prices will recover and, although the pace of growth may not be a meteoric, they could quite easily continue to rise simply because the drivers which have pushed house prices higher and higher over the last few years haven’t simply gone away overnight.
“We’re still desperately short of housing stock as well as people with the skills to build new homes. Until that’s resolved, it’s difficult to see any lasting change as there will still be too many buyers for too few homes.”