Can we expect price rises following Brexit extension?

Houses with CPS Sold boards outsideAccording to property website Rightmove, the house market across the UK is likely to stage what they are calling a Brexit “relief rally” over the summer, as there were evident signs of bounce back in house prices throughout March and early April.

Rightmove stated that asking prices on the website had increased by an average of 1.1% (£3,447) in the month to April 6th, and they now believe the Brexit extension - that saw the UK and EU agree to a delayed deadline date of October 31st - is likely to provide a further boost to confidence levels within the property market.

Some short-term certainty for home movers

The near future is sure to hold plenty of twists and turns, but this extension provides some short-term certainty and that could give encouragement to home movers who were perhaps a little hesitant to dip into the market before the extension was announced.

The property website claim that they aren’t expecting a huge surge in activity but do predict a healthy degree of increased demand from buyers looking to take advantage of static property prices and affordable fixed-rate mortgages.

Strongest rise in three years

Spring is traditionally a strong period for the property market, and the figures recorded by Rightmove show that the rise through March and April was the strongest in three years.

This analysis is in sharp contrast to the predictions made by The Royal Institution of Chartered Surveyors (RICS), who had previously assessed that house prices were likely to fall across the UK for the next six months, with some regions experiencing declines that would stretch throughout the entire year.

Falling transaction numbers has resulted in house price data becoming highly volatile and extremely variable in monthly figures, so this likely explains the difference in opinion among many industry professionals. Most housing economists advise against reading too much into short-term data due to the volatility, with quarterly and annual figures likely to provide a much more reliable guide.

Growing families most likely to be tempted into moving

Rightmove say that family homes were proving to be in the strongest position, as parents were no longer being put-off by the uncertainty that surrounded Brexit - at least for the short-term.

Miles Shipside, one of three directors at Rightmove, explained this by saying that properties in the middle sector tend to be second-steppers who have outgrown their first property, and with a growing family it can become more difficult to postpone a move to a more ideal home. He says that many families may have already delayed moving for a year or more while waiting for a better understanding of the Brexit situation and, understandably, their patience is running out. This calmer period now provides the perfect opportunity for them to upsize and ensure they benefit from some certainty during the move.

If you’re looking to buy, sell or invest in a property in Cardiff, then contact our team here at CPS Homes because we have the knowledge and expertise to help you every step of the way. Call us today on 02920 668585, e-mail enquiries@cpshomes.co.uk or pop into one of our three Cardiff branches.

08 May 2019

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