Reluctant buyers and sellers are getting ready to pounce on the property market following a definitive Brexit outcome according to a recent survey.
59% of potential buyers and sellers have placed their property purchases on hold until after this year’s Autumn Budget at the very earliest, with many waiting until the Brexit dust settles, according to a survey by Experience Invest.
Over half of respondents had delayed their home moves over the last six months and over a third (37%) had withdrawn their properties from the market, determined to get a higher price than they can expect in the current climate.
This seems like a prudent move considering house prices have slowed to their smallest level of growth since 2012.
Currently, the average UK house price, according to July’s ONS House Price Index, has only increased by 0.7% in the year to July, halving from the 1.4% annual growth in the year to June. As house prices decline, it is unsurprising that so many sellers are putting their moves on hold.
However, buyers and sellers are not withdrawing from the market altogether. The political situation is merely causing a temporary hibernation. Over half (51%) of the Experience Invest survey respondents believe the market will return to action after the 31 October deadline is passed and a clearer EU outcome is reached.
Meanwhile, a number of pessimistic buyers are monitoring properties of interest in the hope that a difficult EU withdrawal will result in declining property prices which could be exploited.
Overall, the majority of buyers and sellers feel confident the property market will improve in the next six months with only 31% anticipating Brexit creating a long-term decline in property prices.
Jerald Solis, Business Development and Acquisitions Director at Experience Invest, commented:
“There has been a great deal of speculation about how Brexit will impact the UK’s property market. Since the referendum, however, while some parts of the market have slowed or dipped slightly, prices on the whole have held firm or, in many regions, risen steadily.
“Nevertheless, our research clearly shows many property investors are now adopting a ‘wait and see’ approach as the Brexit deadline draws near. And this means there could be a surge of activity once Brexit materialises. Once the dust settles, investors are evidently preparing to spring back into life, which could result in far greater activity across the UK property market.”
Are conveyancers confident the market will bounce back following a definitive Brexit outcome?
