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Property Market Showed Strength Before EU Referendum
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The property market showed strength ahead of last month’s EU referendum, according to the latest Property Activity Index from Agency Express.
The month-on-month data shows a nationwide increase in both new property listings, at 10.6%, and the number of properties sold, at 2%, over June.
Property Market Showed Strength Before EU Referendum
The growth recorded by Agency Express corresponds to recent figures from Dr. Rebecca Harding, the Chief Economic Advisor at the British Bankers’ Association, who reports: “Mortgage approvals have bounced back following the sharp drop in April, caused by the initial reaction to the Stamp Duty surcharge.”
The Property Activity Index found that gross mortgage lending rose by 10%, or £12 billion, in June compared to the same month last year, while remortgage approvals were up by 18% – the highest level since February 2011.
On a regional basis, Agency Express found that nine of the 12 UK regions recorded increases in both new property listings and properties sold over the past month.
The following regions recorded the greatest growth in new listings:
- London – 72.3%
- South East – 22.3%
- North East – 10.1%
- Yorkshire and the Humber – 9.6%
These regions saw the largest rises in the number of properties sold:
- West Midlands – 25.9%
- East Midlands – 11.8%
- South East – 4%
The standout performer of the month was the West Midlands. After a three-month lull reaching -14.5% in May, the number of properties sold bounced back to 25.9% in June – a regional best.
London also made robust monthly increases over June, with new listings standing at 72.3%. Although this wasn’t a record, figures were up by 14.9% on June last year.
The greatest decline in June’s Property Activity Index was recorded in East Anglia. The amount of properties sold fell for a second consecutive month, at -4.2%.
The Managing Director of Agency Express, Stephen Watson, comments: “During June, we expect to see a buoyant property market and this month’s Property Activity Index has shown growth for a large proportion of the UK. However, with the EU referendum only a week ago, the Brexit affect is yet to unfold. Looking forward into the second half of the year, it will be interesting to see how it affects the usual trends of the market.”
While activity remained strong during June, recent figures also show that house prices continued to grow last month.
