House prices accelerated before Brexit shock, says ONS

Property values were on the up in June, with the average home increasing £17,000 to reach £214,000. Well there is no dispute being a landlord and building a portfolio of properties continues to make more and more sense – Originally posted on

House prices accelerated in June despite the uncertainty created by the EU referendum, says a new report.


The Office for National Statistics’ (ONS) latest house price index reports valuations rose 8.7 per cent year-on-year, up from 8.5 per cent in May.

On a monthly basis, property rose one per cent, adding £17,000 to the average value from the same month last year. The average cost of a UK home is now £214,000.

Unlike some other sector surveys, the ONS index includes both newbuild and cash sales and is a more comprehensive review of the market, notes the BBC.

However, it is also based on completed sales and so says little-to-nothing about the trend after the vote for Brexit.

Evidence from the likes of the Royal Institute of Chartered Surveyors (Rics) suggests transaction volumes and house price growth have declined since the end of June but that prices are still moving positively amid a profound housing shortage.

Richard Snook, a senior economist at PricewaterhouseCoopers, told the Daily Telegraph: “In our main scenario, average UK house property growth will decelerate to around three per cent this year and around one per cent in 2017.

“Cumulatively, our estimates suggest average UK house prices in 2018 could be 8pc lower than if the UK had voted to stay in the EU.”

London estate agent Jeremy Leaf, a former Rics residential chairman, said: “There is no doubt that there is too much concentration on pricing and not enough on transactions.

“Volumes will be affected by uncertainty at least until September… Transactions are more important than headline prices as it is important for the health of the market that people are moving and there is plenty of activity. This has more impact on the economy.”

In terms of the regional trends in the ONS figures, high-value central London areas were shown to be falling ahead of the referendum as successive tax changes hit demand. Kensington and Chelsea and Hammersmith and Fulham saw declines of 6.2 and 3.2 per cent since last year.

Aberdeen, which has been hit hard by a decline in the offshore oil sector, experienced the biggest drop with a slide of 6.8 per cent.

On the other hand prices were seen rising fastest in the Western Isles (up 28.1 per cent), where low volumes make trends volatile, as well as Slough (up 24.6 per cent), Luton (21.8 per cent) and the London 2010 Olympics borough of Newham (21.4 per cent).

Owners across whole country see big rises after Brexit

HOUSE prices and mortgage lending continue to rise on the back of the Brexit vote as the UK property market goes from strength to strength. Originally published on by Sarah O’Grady

Banks and building societies recorded their strongest figures for the month of June for eight years as they handed over £20.7bn of home loans.


That is a 16 per cent increase compared with May’s total of £17.8bn, according to the Council of Mortgage Lenders, showing how buyers and movers ignored the Project Fear economic warnings in the run up to the referendum.

And property prices across the UK’s major cities have failed to falter post-Brexit and continue to record double-digit annual growth in June.

City property values in June were 10.2 per cent higher than a year earlier – matching the annual rate seen in May – said property analysts Hometrack.

The uplift is stronger than a 6.9 per cent year-on-year price uplift seen in June 2015.

The great Northern cities of Manchester, Liverpool and Leeds – where millions of people voted Leave in June’s referendum to exit the EU – are leading the way.

Lower interest rates, improving local economies and higher returns for landlords are making purchases in the North attractive to investors and the market has seen strong growth in the last quarter on the back of more affordable prices compared with the South.

A typical home in Manchester now costs £147,400 after a nine per cent increase, while in Leeds the average value is £151,800 (7.6 per cent) and Liverpool £112,200 (6.1 per cent).

Sheffield has recorded a 4.3 per cent increase to £128,800 and Newcastle a rise of 3.6 per cent to stand at £126,400.

Doom-mongers predicting economic meltdown in the wake of the Brexit result have been left non-plussed by a raft of positive figures.

Earlier this week, official figures showed record high levels of employment and the week before the Bank of England defied predictions by keeping the base interest rate on hold at 0.5 per cent.

There have been suggestions that a rate cut may come next month, potentially making some borrowers’ costs even cheaper.

Bristol remains the fastest-growing city in the UK for house price increases, with a year-on-year growth rate of 14.7 per cent, found the report which tracks house price movements across the UK’s 20 biggest cities.

A surge of investors piling into the housing market earlier this year has helped to keep prices pushing upwards across the UK, Hometrack said.

On April 1, a stamp duty hike was introduced for buy-to-let investors, and there were signs of investors rushing to snap up properties before the tax increase came into force.

The ripple effect through April, May and June boosted mortgage lending and the value for June was three per cent higher than the £20.1bn for the same month last year.

This latest lending total is the highest for June since the £22.6bn reached in 2008, the CML figures showed.

But year-on-year house price growth in London and in other cities in the South of England, such as Cambridge, Southampton and Bournemouth started to slow between May and June.

Richard Donnell, insight director at Hometrack, said: “In many large regional cities, sales appear to have held up thanks to a combination of much better housing affordability, improving economic growth and record low mortgage rates helping to stimulate demand.”

He said it is “still very early days” to assess the full impact of the vote to leave the EU on the housing market.

But Mr Donnell added: “Our view remains that sales volumes are likely to slow and price growth will moderate over the second half of the year.”

How house prices have grown across the UK’s major cities in the year to June.

Bristol, £253,400, 14.7 per cent

London, £476,800, 13.7 per cent

Cambridge, £411,800, 11.5 per cent

Southampton, £214,600, 9.7 per cent

Portsmouth, £215,700, 9.3 per cent

Manchester, £147,400, 9.0 per cent

Oxford, £407,800, 8.7 per cent

Birmingham, £143,300, 8.3 per cent

Bournemouth, £265,000, 8.0 per cent

Nottingham, £137,800, 7.8 per cent

Leeds, £151,800, 7.6 per cent

Leicester, £151,800, 7.5 per cent

Cardiff, £188,700, 6.8 per cent

Liverpool, £112,200, 6.1 per cent

Sheffield, £128,800, 4.3 per cent

Glasgow, £113,400, 3.7 per cent

Newcastle, £126,400, 3.6 per cent

Edinburgh, £203,500, 3.2 per cent

Belfast, £122,700, 2.6 per cent

Aberdeen, £179,900, minus 8.2 per cent

Encouraging news post Brexit – U.K. Property Market Proves Resilient

U.K. Property Market Proves Hardy Following Brexit Vote.

  • House-price decline only slightly above pre-vacation average
  • Underlying demand for homes should overcome uncertainties

Original article posted on by Luck Meakin

The appeal of bricks and mortar remained relatively robust in the face of the initial shock of Britain’s vote to leave the European Union.

Asking prices for U.K. homes declined 0.9 percent to 305,504 pounds ($406,000) this month, a drop only slightly greater than the average over the past six years, according to property website operator Rightmove. Buyer demand declined from last year, when it was boosted by the general election result, but was at the same level as 2014 amid supply constraints and low mortgage rates.

“While confidence has been unsettled, the governmental instability in the few days after the referendum now seems to be being addressed far more quickly than was originally imagined,” said Rightmove Director Miles Shipside. “This is not a new credit crunch and the effect on banks and mortgage lending should be limited. As long as lenders keep mortgage deals attractive and available, the underlying demand for home ownership should overcome most uncertainties.”

Rightmove said home values typically fall about 0.4 percent in July as sellers price “more conservatively” going into the summer vacation season. Areas of the country where the housing market was struggling earlier in the year, such as parts of London, will continue to see price reductions, it said.

Homebuilding could get a boost if the government scales back fiscal austerity to aid the economy, as Britain’s new Prime Minister Theresa May has indicated, which would also help lessen price pressures, Rightmove said.

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