Project Fear starting to look ridiculous as UK house prices rise
07-08-2016
HOUSE price growth jumped again last month, quashing fears the run-up to the Brexit referendum would dampen the market.
By Lana Clements
House prices increased in June
Values increased by 1.3 per cent in June, in the fastest rate of monthly growth since March, as measured by Halifax.
The typical house price now sits at £216,823, according to the lender.
On an annual basis prices surged by 8.4 per cent, a slowdown from the 9.2 per cent measured in both April and May.
Experts said it was still too early to judge how Britain's vote to leave the European Union (EU) is set to impact the property market in the coming months.
However, a lack of supply is expected to sustain growth.
And estate agents have reported the market still appears to be ticking over at the moment.
Jeremy Leaf, a former RICS residential chairman and north London estate agent, said: "Post-Referendum at the coalface we have found vendors and buyers willing to proceed in the face of potential adversity with a new sense of realism about the changed environment they find themselves in.
"Vendors who are more realistic on pricing and buyers who are prepared to be more flexible are able to do deals."
Rob Weaver, director of investments at property crowdfunding platform Property Partner, said: "This is a snapshot of the market pre-Brexit, and while the vote to leave has resulted in a political earthquake, the fundamentals in the housing market remain unchanged - people still need a roof over their heads."
He added: "During periods of volatility in the stock and currency markets, investors tend to prefer assets which can provide a reliable income, combined with lower risk to preserve their wealth.
"For investors, residential property offers both of these attributes.
“Historically, residential property has been the best performing and lowest risk of all the major asset classes.
"Since 1973, through oil shocks, recessions, dotcom bubbles and the global financial crisis, the UK residential market has seen no five-year period with negative total returns."