UK Construction Media

Nationwide: Brexit impact on house prices uncertain

News   •   Jul 28, 2016 15:18 BST

Nationwide reports impact of Brexit may take months to become clear, recording slight increase in house prices in July.

The UK’s biggest building society, Nationwide, has said that the Brexit vote may lead to uncertainty.

In July, property prices rose by 0.5% compared with June, and were up 5.2% on a year earlier.

According to Nationwide, this meant the average UK home was valued at £205,715.

Even so, the resulting impact on house prices was “not certain”.

Nationwide’s Chief Economist, Robert Gardner, said: “Any impact from the vote may not be fully evident in July’s figures, as there is a short lag between a buyer making the decision to purchase a property and applying for a mortgage.”

“How the labour market evolves will be crucial in determining the demand for homes in the quarters ahead.”

This is the first house price data captured after the EU referendum, and experts warn that any disruption from the vote may not yet have been felt.

This is because the index uses data from mortgage offers and there is a lag between a buyer making the decision to purchase and being offered a mortgage.

He added: “Even if there is a fall back in demand as a result of economic uncertainty, the impact on house prices is not certain, as potential sellers may also hold off from placing their properties on the market,” he said.

Jonathan Hopper, Managing Director of buying agents Garrington Property Finders, said: “While you can’t read too much into the July house price rise, what is certain is that there has not been a crash in property prices since Brexit, more of a soft landing.”