In 2016, the British public secured a surprise result to leave the EU.
There were initial concerns and warnings that the UK property market would plummet as a result, however, shortly after the Brexit result, we highlighted three aspects of the property market in 2016.
Two years on, the UK housing and property market continues to defy expectations and has created a mini-boom for first-time buyers in the country. We assess the same three aspects and how they’ve fared since the Brexit vote.
Average House Prices have increased by 2.8% annually. Over the past two years, house prices have gradually slowed down, which is encouraging for first-time buyers who are looking to get onto the property ladder, with first-time buyers reaching the highest figure last year since 2006. Is Brexit good for first-time buyers?
UK Housebuilding sector exceeds expectations. Despite initial concerns on how the UK’s manufacturing industry would perform after the outcome of the Leave vote, the UK housebuilding sector has been a driving force. Find out more.
The highest amount of new builds since 2007. Although the current government has set a target of 300,000 new builds yearly by 2022, which is expected to be missed, 43,578 new builds were registered in the 3rd quarter of 2018, the highest amount of new homes registered since 2007. Read more.
Property prices on the rise, demand continuing to increase and a lack of supply. These are the three stories that have shaped the post-Brexit property market.
Annual property price growth 7.7%
The main story of the property market post Brexit is the fact that property prices have continued to grow. The latest figures from the Office of National Statistics boast an annual growth of 7.7%.
If we quickly take a look back to the summer of 2015, annual house price growth was at 5.5%. That’s over 2% lower than current figures. This positivity is reflective of a market that is unlikely to see any negative growth any time soon.
Property price is driven by demand
Demand for property in the UK has always been high, but in 2016 demand for property has grown thanks to Brexit. Post-vote, large property developers hesitated about new developments, placing them on hold immediately.
Property prices have been affected due to this hesitation. The average UK house is now worth well over £215,000. That is the highest average house price that the UK has ever seen. This brings us to the third main factor of property price growth post Brexit.
Supply of property-poor
The government were forced to admit this week that they were well short of meeting their property construction goals. The aim of building 1,000,000 new UK homes before the next election is falling behind.
The fact that the government is already behind on its house building goals is bad news for the property supply chain. There must be at least 200,000 new homes built every year for the Government to meet its targets, but so far this figure has never been met in a 12-month period.
Overall, this creates a great property market for small business property developers.