Will the house price growth continue post-Brexit?

Will the house price growth continue post-Brexit?

Defying all Brexit-odds and suggestions of a slowing market, Britain’s house prices saw an increase in August, Nationwide recently reported.

In August, asking prices went up 0.6% compared to July. This was recorded despite any evidence that the housing market has slowed down recently due to referendum and stamp duty increases on buy-to-let and second properties.

Annually, growth went up to 5.6% from 5.2% one month earlier. This was partly caused by the crippling supply of properties in the market and a decline in buyer demand.

This, most recent growth of house prices also outsripped the growth rate immediately before the referendum, the Nationwide report revealed.

The monthly rate of growth beat the consensus of -0.2%. Samuel Tombs, chief economist at Pantheon Macroeconomics, however, described the Nationwide index as not totally reliable. He said, it has “consistently overstated house price growth between mid-2013 and mid-2014, and it has understated growth over the last year”.

Mr Tombs added: “The indication from the Nationwide data that house price growth strengthened after the Brexit vote— its index increased by 0.5pc month-to-month in July and 0.6pc in August, compared to average increases of 0.4pc in the first six months of 2016 — is incongruous to all the other noises from the housing market.”

Experts do not think these increases will last. Hansen Lu, of Capital Economics, said: “While data from Nationwide point to resilient house price growth in August, leading indicators suggest that this won’t last.”

“Indeed, with house price expectations muted and the economy set to weaken, we think house price growth will slow over the remainder of the year.” He predicted growth would slow to 2pc by the end of 2016.

The recently published and very influential survey by the Royal Institution of Chartered Surveyors gave reason to expect a slower price growth and levels of activity in the market.

Robert Gardner, Nationwide’s chief economist, said:

The pick-up in price growth is somewhat at odds with signs that housing market activity has slowed in recent months.

New buyer inquiries have softened as a result of the introduction of additional stamp duty on second homes in April and the uncertainty surrounding the EU referendum. The number of mortgages approved for house purchase fell to an 18-month low in July.

However, the decline in demand appears to have been matched by weakness on the supply side of the market. Surveyors report that instructions to sell have also declined and the stock of properties on the market remains close to 30-year lows. This helps to explain why the pace of house price growth has remained broadly stable.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT