Property prices continue to grow despite Brexit uncertainty.

21st July 2017

Property Consultant, Tony Freeman, reviews the latest ONS report on property prices in the UK.

A new report released by the ONS highlights how despite the growing economic and political uncertainty, house prices continue to grow.  The growth may not be significant, but the slow and steady rise is certainly encouraging within the era of impending Brexit.

The average property price in the UK rose by 4.7% from last year to £220,713. The fastest growth was seen outside of London in the East of England, with growth as much as 7.5%.

Major cities outside of London, such as Manchester and Birmingham are performing well. Birmingham is now the fastest growing major city for house prices, with a 7.8% annual increase, raising the average property price to £154,900. Hometrack experts predict that growth in these cities outside London will continue through 2017, citing record low mortgage rates and falling unemployment for helping support the growth.

Though slow compared to previous years, the new data can be seen as encouraging, showing the world that despite the uncertainty and scare mongering of Brexit, the UK continues to grow at a steady rate.

London showed one of the slowest growth rates in the UK at 3%, compared to 14% last year -though the average price of property continues to be more than double than anywhere in the UK at £481,345.   This dramatic drop in growth could be due to a number of reasons. The doom and gloom of Brexit could have hindered interested from the overseas investors that are so drawn to the capital. But it may simply be the case that the London Property boom has had it day. Buyers have hit their price ceiling and are looking at other locations for more affordable housing. Demand for commuter areas are increasing, as well as the prices.

Milton Keynes is one of those commuter areas that is seeing a rise of interest from buyers and this year was named the best performing new town for property growth over the last 30 years. Less than an hour on the train from the capital and average property prices at £309,415, first-time buyers are venturing away from London to the more affordable new town developed in the 60’s.

Buyer intent is still high, but the sensitivity of the current property market still needs to be monitored closely over the next year. As Brexit talks get underway, we may not see the last of slowing, if not falling, property prices.