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House prices up as Brexit hits

Cranleigh_Property Development funded by Hunter FInance

Brexit has happened

Finally, it has happened, the EU referendum is over. So far, 2016 has been dominated with predictions and articles about what will happen post the 23rd June.

News, social activates and events had become embroiled in an on-going discussion about what the future might hold for the country. And as last Thursday told us, the country has decided to leave the EU.

Brexit knee-jerk beginning to subside

While uncertainty hit hard on Friday morning, markets reacting to a result that had the long odds of 9/1 at midnight Thursday. Monday continued the trend with sinking shares and pound prices, but as the week moves forward and more certainty about the future of the country comes to light, the markets began to bounce back.

Our attractive interest rates haven’t been affected.

Before we get embroiled in what will happen to the housing market as we go forward, let’s take a look at what has been happening. Amid the press blow-up of Brexit reporting, Nationwide have released their latest House Price Index figures. The last pre-Brexit figures we will receive from the building society.

Annual house price growth up in June

In 2016, house price indexes have been a bit up and down. Two main reasons behind this are the increased stamp duty charges that came into affect back in March and the uncertainty of the EU referendum. March saw record house sales as a result.

June looked to buck the trend, though; annual house price growth now up to 5.1% compared to the 4.7% figure of the previous month.

Growth in the South East Market

If we look closer to home – for us – and at the South East market.

House prices within the South East are growing at an annual rate of 8.8% up from the 8.3% of the previous months, showing the potential that the market still has to offer. London’s strength as a global player in business forcing commuter towns and cities to up their prices as bidding wars take place within a market void of regular supply. A theme that not even Brexit can touch.

London and the South East will always be strong areas to invest in property. See how much you can borrow.

For specialist property development lenders contact Hunter Finance for a rapid response.

Post-Brexit property market

While Nationwide’s figures assess the market pre-Brexit, there is still a lot to take from what the figures tell us. In light of the referendum, house prices continued to grow due to the limit number of houses that are on the UK market. Some might say this is all set to change, but we have to disagree.

Working closely with local estate agents, we have discovered that after an initial brief panic buyers are sticking with the market. At the end of the day, people need houses. Waiting may have been an option to consider, but the UK’s actually divorce from the EU is not set to take place for another three years – at best. So any real consequence from the ‘new’ world is unlikely to be seen in 2016. Jobs and work remain stable for the time being, which equals people buying houses.

What do developers have to say on the matter?

New enquiries following Brexit have – of course – involved discussion around the outcome of the referendum. Most of the developers we speak to believe that supply is so far behind demand that even a dip in house sales still won’t come near to bumping the market into negative growth any time soon.

Despite the hellish scenarios predicted pre-Brexit, there’s no real need to panic about the property market right now. Especially when a generation of renters are still pining to get on the ladder. While FTSE 100 companies cower over falling share prices due to the unnecessary panic of their shareholders, the opportunity has risen for smaller developers to shine in an honestly bright looking market.

Call our expert team on 01825 749721 for property development funding

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News & Features

Cranleigh_Property Development funded by Hunter FInance

Brexit has happened

Finally, it has happened, the EU referendum is over. So far, 2016 has been dominated with predictions and articles about what will happen post the 23rd June.

News, social activates and events had become embroiled in an on-going discussion about what the future might hold for the country. And as last Thursday told us, the country has decided to leave the EU.

Brexit knee-jerk beginning to subside

While uncertainty hit hard on Friday morning, markets reacting to a result that had the long odds of 9/1 at midnight Thursday. Monday continued the trend with sinking shares and pound prices, but as the week moves forward and more certainty about the future of the country comes to light, the markets began to bounce back.

Our attractive interest rates haven’t been affected.

Before we get embroiled in what will happen to the housing market as we go forward, let’s take a look at what has been happening. Amid the press blow-up of Brexit reporting, Nationwide have released their latest House Price Index figures. The last pre-Brexit figures we will receive from the building society.

Annual house price growth up in June

In 2016, house price indexes have been a bit up and down. Two main reasons behind this are the increased stamp duty charges that came into affect back in March and the uncertainty of the EU referendum. March saw record house sales as a result.

June looked to buck the trend, though; annual house price growth now up to 5.1% compared to the 4.7% figure of the previous month.

Growth in the South East Market

If we look closer to home – for us – and at the South East market.

House prices within the South East are growing at an annual rate of 8.8% up from the 8.3% of the previous months, showing the potential that the market still has to offer. London’s strength as a global player in business forcing commuter towns and cities to up their prices as bidding wars take place within a market void of regular supply. A theme that not even Brexit can touch.

London and the South East will always be strong areas to invest in property. See how much you can borrow.

For specialist property development lenders contact Hunter Finance for a rapid response.

Post-Brexit property market

While Nationwide’s figures assess the market pre-Brexit, there is still a lot to take from what the figures tell us. In light of the referendum, house prices continued to grow due to the limit number of houses that are on the UK market. Some might say this is all set to change, but we have to disagree.

Working closely with local estate agents, we have discovered that after an initial brief panic buyers are sticking with the market. At the end of the day, people need houses. Waiting may have been an option to consider, but the UK’s actually divorce from the EU is not set to take place for another three years – at best. So any real consequence from the ‘new’ world is unlikely to be seen in 2016. Jobs and work remain stable for the time being, which equals people buying houses.

What do developers have to say on the matter?

New enquiries following Brexit have – of course – involved discussion around the outcome of the referendum. Most of the developers we speak to believe that supply is so far behind demand that even a dip in house sales still won’t come near to bumping the market into negative growth any time soon.

Despite the hellish scenarios predicted pre-Brexit, there’s no real need to panic about the property market right now. Especially when a generation of renters are still pining to get on the ladder. While FTSE 100 companies cower over falling share prices due to the unnecessary panic of their shareholders, the opportunity has risen for smaller developers to shine in an honestly bright looking market.

Call our expert team on 01825 749721 for property development funding

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