UK property prices increase despite Brexit vote
The month-on-month value of UK properties increased in June despite the result of the EU referendum
The UK property market continued to show its strength in June as the average house price rose despite the public voting to leave the EU. The positive figures recorded comes amid economic uncertainty across many of the British financial markets, including the FTSE250.
The average price of a UK home is now up at "216,823 after the average value increase in the month of June, according to a report from the Halifax House Price Index. This indicates that, despite a pending exit from the EU, the UK housing market has strength when standing on its own two feet.
It is common for investors to choose residential property during periods of volatility and unrest in the stock markets as it can provide a reliable source of income to help maintain the appropriate level of wealth. There is the belief within the marketplace that significant life decisions, such as buying a house, cannot be put on hold indefinitely.
Rob Weaver, Director of Investments at property crowdfunding platform Property Partner, commented: “The fundamentals in the housing market remain unchanged. People still need a roof over their heads. There’s been a stand-off between sellers and buyers with transactions dropping off since the stampede in March to beat the stamp duty deadline. But sales should start to pick up in coming months with the weight of uncertainty now partially lifted.”
Of all the major asset classes, residential property has continued to perform despite the market uncertainty. Since 1973, the UK residential market has not seen a negative total return in any five-year period - and this has been throughout times of oil shocks and the global financial crisis.
With the prospect of a further reduction in interest rates, UK residential property could once again prove to be a lucrative market for investors.
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