House prices continue to grow post-Brexit
With many fearing a serious downturn in the price of UK houses, you will be surprised to find that it has been the opposite. Recent research from Zoopla’s index shows that prices continue to gather pace. The average price on June the 9th was £297,508 – that figure has now grown to £304,166.
There is more evidence to support this growth. The number of mortgages handed out by banks was at its peak in June. The last time we saw as many approvals was back in mid 2007 before the financial crash.
Analysts have also stated that any slowdown in sales this month can be attributed to the usual summer slowdown. If the demand was to dissipate, it seems unlikely the prices would continue this drive.
Council of Mortgage Lenders data showed first-time buyers taking out 34,300 loans in June with a total value of £5.5billion – that is 24 per cent up compared with May and 17 per cent more than in June 2015. The figure is the highest for first time buyer lending since 35,300 loans were handed out in August 2007.
With the bank of England making a cut to the base rate (now 0.25 per cent), it is likely we’re going to see an even further boost to the market. The referendum may have had an effect on individual outlooks, but currently we’re yet to see this impact show on the residential market.