Research suggests Brexit will have no imminent impact on house prices
New research has indicated that Brexit could have a limited effect on UK house prices in the immediate future.
Compiled by Hometrack, the latest index highlights the continued annual price growth in the Leicester, Edinburgh, Manchester, Birmingham and Liverpool in particular, indicating regional housing markets are ‘shrugging off uncertainty’ in the face of ongoing Brexit negotiations and the departure from the EU next year.
And despite some declines in Cambridge, Aberdeen and most notably London, these are down more to market conditions and stretched affordability than political wranglings.
Meanwhile, the asking price to selling price gap is still extremely small, especially in high-growth towns and cities such as Manchester and Liverpool, indicating that current house prices are in-line with the market and demand strong, with just a 2% discount in Manchester and the lowest discounts for half a decade in Liverpool.
Insight director at Hometrack, Rochard Donnell said that: “Two and a half years on from the Brexit vote, our analysis reveals a limited direct impact from Brexit uncertainty on the housing market thus far.
“Large regional cities continue to register above average house price inflation with the discount between asking and sales prices narrowing on rising sales volumes.
“In the very near term, we expect market trends to continue until the outlook becomes clearer.
Read more: House prices in the North West to rise fastest in the UK over the next five years
“Housing markets in regional cities certainly appear to be in more of a business as usual mode while the London market continues to adjust though modest price falls.
“Our lead housing indicators suggest no imminent deterioration in the outlook for prices or levels of market activity.”
Northern markets leading growth
Property markets in the North have been leading the growth charge over the last few years, with Manchester and Liverpool the most notable markets experiencing marked and sustained growth as urban regeneration and investment pick up the pace.
Of the UK’s largest 20 cities, Manchester saw the third highest growth over the last 12 months at 6.3%, whilst Liverpool (6%), Sheffield (5.4%) and Leeds (4.7%) also sat in the top nine growth cities.
Read more: Manchester property market growth highest in the UK in five of the last six years
Earlier data from Savills suggested that North West house prices are to rise the fastest in the UK over the next five years, suggested a rise of up to 22% as well as continued +19% growth in Yorkshire and the Midlands.
The report predicted an average UK-wide house price increase of around 15%, dragged back slightly by more stunted growth in London, which would add an extra £32,000 on average to the value of homes by January 2024.
