House prices rise by 0.6% in leadup to EU Referendum

Ryan Bembridge

July 14, 2016

House prices rose by 0.6% in June despite the pending EU Referendum decision, the LSL and Acadata England and Wales House Price Index has revealed.

Before June there were three consecutive months of dipping house prices, including a 0.9% fall in May, however with the 0.6% monthly rise annual inflation reached 6.0%, with prices typically standing at £293,444.

Adrian Gill, director of Your Move and Reeds Rains estate agents, said: “Brexit will undoubtedly have a wide range of consequences for the housing market, however, it would be wrong to assume that these will all be negative.

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“Exactly how the implications will play out in the sector over the coming months is yet to be seen, and whist London is likely to feel the effects more acutely, it is important to remember that the outlook is not all doom and gloom. Already lower interest rates promised by the Bank of England to stave off any slowdown are set to ease affordability and support prices.

“What is clear is that the impact of April’s Stamp Duty increase has now largely played out, and there’s little evidence to suggest it has significantly hit investor appetite: first time landlords seem no less common and there’s new interest in mixed commercial and residential purchases, such as flats over shops that escape the increase.

“Ultimately, with interest rates set to remain lower for longer, the Bank of England reducing banks’ capital requirements and changes in government imminent, the short-medium term outlook for the housing market could well remain positive after all.”

Regionally the East of England represented a house price hotspot, with 9.4% of annual growth compared to 7.3% in London, while average prices in the capital fell by 1.4% from the month before.

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