News: Average Property Prices Decrease Post-Brexit
Much of the recent news since the UK’s decision to leave the European Union has surrounded the uncertainty of what exactly that will entail. Changes are already being noticed in the property market, as average property prices decline across England and Wales, falling by £2,647 during the four-week period leading up to and after the Brexit vote.
But property experts have suggested that this decline might not wholly be an upshot of the uncertainty following the referendum result. Although Brexit appears to be one of the key contributing factors, experts are citing other impacts.
Varying Impacts Are Affecting the Property Market
April’s Stamp Duty increase is said to be another leading cause. After the rush of buy-to-let investments prior to the Stamp Duty changes, experts had predicted a stall in property purchases and a decline in prices for the second quarter of the year.
Tax on buy-to-let properties has risen, therefore property prices were anticipated to lower after an initial period.
Declines in property prices are not uncommon for this time of year as a whole either. July is traditionally marked as the start of the annual summer slump in the property market. Miles Shipside, Rightmove director, states: “As far as the price of property coming to market is concerned, the fall of 0.9% is within the range that we have seen at this time of year since 2010.”
Uncertainty Remains as to Whether Prices Will Stabilise
Since Brexit, more new properties are being listed for sale compared to the same time last year. During the two weeks before the referendum, properties added to the market were down by eight per cent; this rose up to 6% in the two weeks after.
Market experts have warned that it is still too early to suggest whether or not the property market will stabilise and bounce back. The short- or medium-term impacts remain largely uncertain.
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