Among the numerous uncertainties that we’ve been living with under the cloud of Brexit since 2016, and perhaps the most worrying for you, is house prices. With all kinds of markets in states of decline or at best, stagnant, people have been putting off looking for a new home and holding back from putting their house on the market.
There may finally be some good news that shows we’re moving past this though. Reports published by the National Association of Estate Agents last month show that they UK housing market may be beginning to recover from the stagnation caused by Brexit. As the country starts to settle and people just start to get on with their lives, it seems homeowners and potential buyers are leading that march.
The NAEA research reported a 16% increase in the average number of house hunters registered to estate agents in May compared to the previous month. This in itself is good news but coupled with the fact that the average number is also the highest it’s been in 8 months means that this could represent a strong trend rather than just a blip.
It’s not just good news for sellers though. More potential buyers in the market than the supply can accommodate can just lead to disproportionately inflated house prices. Fortunately though there was also a 17% increase in the average numbers of properties up for sale with estate agents in the same period. Now, although sellers might not like to hear this as it will inevitably impact on the price they can sell for, it’s undoubtedly good news all round.
An unbalanced market on either supply or demand side is not sustainable in the long term. And while the bubble of a sellers’ market might seem good for some, it’s a false confidence. Economists have told us for years that steady and stable growth is the only way for everyone in a market to benefit, both individually and as a whole. So the fact that both buying and selling markets are growing steadily and, perhaps more importantly, at comparable rates is good news all round. Those looking to enter the markets can now do so with greater confidence but people looking further ahead in the future can rest assured that there is a good chance that these changes are here to stay.
One of the big lessons we’ve learned from the Brexit process is how closely linked so many parts of our personal and professional lives are interlinked and can impact on each other. The way that the housing market affects the retail industry, job markets, currency rates and even travel markets, has become abundantly clear of late. So, even though there is still a lot of uncertainty around what a final Brexit conclusion will mean for us as individuals and as a country, we can be encouraged by this big step towards real signs of stability. Indeed, as market confidence grows, we could soon begin to see a positive knock on effect in other markets too.