While the housing market remained stable in the run-up to the EU referendum, following the vote there was uncertainty amongst sellers and supply dipped.
According to the National Association of Estate Agents, buyers were unfazed in the lead up to the referendum, with sales to first-time buyers and demand for housing both up in June.
However, agents witnessed uncertainty from sellers and supply fell momentarily following the result.
In June, estate agents saw an increase in demand overall. There were an average 330 house hunters registered per member branch last month – an increase of 9% from May, the lowest number recorded since November 2013.
Following the Brexit result, three in five (57%) reported a drop in demand from prospective buyers and three in five (58%) saw supply fall in the week after the vote. However, it is expected this will level out in July.
The NAEA said first-time-buyers were not impacted by the Brexit result. Immediately following the result only three in 10 (28%) NAEA agents witnessed uncertainty from the group, while a third (30 per cent) of total house sales in June were made to FTBs, the highest number of sales since October last year.
The Brexit vote did not affect the number sales that completed in June either, with a total of eight sales completing per branch last month – a figure which has not shifted from May. Further to this, the supply of available housing also remained the same – with an average of 37 properties registered per member branch in June.
Mark Hayward, managing director of the NAEA, said: “In periods of extreme political and economic uncertainty, the housing market will always respond. However, it’s a relief to see that looking at the whole month overall, buyers were still keen to buy, sellers were still keen to sell and sales were still going through at the same level as we’d expect. It’s only natural that immediately following the vote supply fell but our figures show that the lead up to the vote wasn’t all doom and gloom, which should be a good indication of the months to come.
“We remain upbeat and need others in the industry to do so as well. The new Housing Minister confirming his commitment to building £1 million new homes will be encouraging for many buyers, especially those looking to buy their first home. Hopefully we should soon see housing market confidence bouncing back to the levels seen pre-Brexit.”
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