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Housing Market’s Outlook Post-Brexit Improves as Confidence Returns

New research has found that there has been a rise in confidence and increased demand for property post-Brexit, despite fears of declining interest.

New research has found that there has been a rise in confidence and increased demand for property post-Brexit, despite fears of declining interest.

A new report compiled by the Royal Institute of Chartered Surveyors (RICS) shows that confidence in the housing market is restoring following a dip in the immediate aftermath of the Referendum vote.


Based on the responses of RICS members, the report shows the majority of this group expects house prices and sales to continue on an upward trajectory over the next three months – a trend not witnessed since April 2016.


Over the long term, the respondents expect to see a 3.3% growth a year – the most optimistic prediction since Brexit.


Figures from the report also showed an increase in the number of surveyors who reported price increases over August, with this group rising from 5% in July to 12% in August.


London, however, remains outside of this trend as the majority of members surveyed reported a fall in house prices in August for the sixth consecutive month; whilst those in East Anglia and the West Midlands felt prices had increased the most.


According to RICS, the shortage of homes continues to play a key role for house price growth and for the return in confidence as estate agents’ available stock levels approach a new record low.


Furthermore, Simon Rubinsohn, RICS’ chief economist, also believes the actions undertaken by the Bank of England in the immediate aftermath of the vote, such as cutting interest rates to 0.25%, were key in returning confidence towards the housing market.

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