Rather than ‘dropping off a cliff’ as some had predicted following the EU referendum, house prices have actually rebounded in September 2016, with claims prices rose by more than £2,200 in September alone.
That certainly doesn’t sound like the property market is in freefall. In fact, members of the Royal Institution of Chartered Surveyors (RICS) are predicting that house prices will increase by 3.3% a year on average for the next five years.
“There are clear signs that the housing market is settling down after the initial surprise of the outcome to the EU referendum," argued Simon Rubinsohn, chief economist at RICS. "Buyer enquiries did dip in August but only modestly, and more significantly, sales expectations are beginning to edge upwards once again.”
It’s important to consider seasonal trends in the housing market. Data has indicated the brief dip in enquiries seen this summer was actually the typical summer slowdown that occurs each year, and it was in line with the average figures over the last six years. The Organisation for Economic Co-operation and Development has also predicted that Britain’s economy will hold up strongly for the rest of the year, despite originally predicting a “large negative shock” if the UK voted to exit the EU.
Therefore, if its fear of an economic slowdown that’s putting you off buying a property then you can relax slightly. Evidence shows that house prices are actually on the rise, meaning buyers who are ready to purchase should do so now rather than wait for prices to climb even further.