Impact of Brexit is yet to be felt

Impact of Brexit is yet to be felt

Nationwide’s latest House Price Index – the first full month’s set of data produced since the EU Referendum - shows an increase of 0.5% in July, putting the average cost of a home at £205,715.

The report highlights the fact that information for the index is gathered at mortgage offer stage, so any impact from the Brexit vote is unlikely to have fully filtered through yet. Bank of England figures show a drop in household confidence following the referendum result however, and Chief Economist Robert Gardner suggests that ‘in the near term, increased economic uncertainty may lead to weaker demand for homes’.

On a positive note, the unemployment rate fell to a ten-year low in the three months leading up to the vote, and interest-rates are at all time lows. Both of these factors are likely to have an impact on the demand for housing, so although Nationwide predicts a slowdown in transactions, there are no indicators so far that demand is set to plummet.

Clearly the potential impact of Brexit will be difficult to measure for some time to come.

To get an idea of how much your house is worth, have a look at our house price calculator

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