Housebuyer demand hits three year low before Brexit

Mortgage Introducer

June 29, 2016

house keys

Even before the UK voted to leave the European Union property demand fell to a 3-year low in May, the National Association of Estate Agents May Housing Market report shows.

In May there were 304 house hunters registered per branch, the lowest number since November 2013.

Two in five (41%) agents predicted house price falls and three in 10 (30%) expected demand to fall as a result of Brexit.

Consumer confidence still lower than before Brexit

Mark Hayward, managing director, National Association of Estate Agents, said: “As a result of the vote for a Brexit, we expect international investors to look a lot harder at the UK as a potential market to buy in and this will have a knock on effect on the house building sector, as investments may be delayed or put off completely.

“Although in the short-term, we believe that house prices will remain stable, we cannot be certain about the next quarter as political uncertainty and market unrest could affect the housing market.

“The supply of available housing is still extremely low compared to this time last year, which is particularly worrying. As we continue to say, there are simply not a sufficient number of homes available in this country to cater for everyone’s needs and a Brexit could impact the skills required to drive property developments in the UK.

“This means that in the longer-term, something will need to give which regrettably could mean a surge in house prices or buyers struggling to find a suitable property in order to move or get that first foot on the ladder.”