Too Early To See Brexit Effect On Property Market

Experts in the property industry have stated it is too early to understand what the impact Britain leaving the European Union (EU) will have on the sector.

Construction workers who handle fabric reinforcement equipment on a daily basis will be keen to find out how Brexit will affect the overall housebuilding market.

St Modwen predicts there will be a cautious approach to housing demand until there is more clarity in the industry.

However, Persimmon in particular estimates that long-term unfulfilled demand will result in growth in the future. Low borrowing costs of recent months, a strong labour market, an increase in housing completion numbers, higher mortgage approvals, and a rise in the average selling price by six per cent all suggest continued confidence in the sector.

Helal Miah, investment research analyst for The Share Centre, said: “Both companies (St Modwen and Persimmon) highlighted that the UK leaving the EU does make it hard to judge the impact on the outlook for housing demand.”

Indeed, Mr Milah suggests it is too early to truly see the result of Brexit.

 
The Council of Mortgage Lenders (CML) recently said the outcome of the referendum, with 51.8 per cent of the public voting to leave the EU compared with 48 per cent who chose to remain, will “weigh on housing market activity over the next few months”.

Mohammad Jamei, senior analyst at CML, foresees both buyers and sellers adopting a wait-and-see policy when it comes to the industry, which could cause a slowdown and reduce the rate at which house prices are increasing.