Property recovers after Brexit slump
Property prices reached an all-time high of £313,655 in April, leaving analysts and property insiders hopeful that the momentum lost after Brexit has come back in force.
Prices rose 1.1 percent between March and April, sending property above the previous high of £310,471 reached in June 2016 - just before the EU referendum.
Prices are up by 2.2 percent over the year, and transaction numbers are higher than they’ve been since before the financial crisis hit. First time buyers are especially active, pushing prices up in this market sector up 6.5 percent.
Analysts are hoping the strong figures will help alleviate uncertainty stemming from June’s general election.
However, signs point to a slowing market, with the annual growth rates being at their lowest level in four years. Prices for Property in London and in England’s North East dropped over the last year, dropping 1.5 percent in the capital to an average of £636,777.
Wales and England’s east told a different story, with growth of 4 percent and 5.3 percent.
Property transactions are also on the up, with numbers 10% higher than the same period in 2016.
Mert Alton from Property UK said demand would continue to push prices up. “The number of new builds coming on the market isn’t keeping pace with demand, which will inevitably lead to higher prices and growing transaction numbers.”
Commercial property strengthening
The UK’s commercial property market is gaining strength, with industrial property outperforming office and retail spaces, according to the Royal Institute of Chartered Surveyors’ UK Commercial Property Market Survey.
Investor demand for commercial property is increasing in every sector in the UK, with a surge in the numbers of buyers seeking industrial assets.
RICS chief economist Simon Rubinsohn said the results are in line with the more positive economic news coming out of the UK.
A significant number of commercial property enquiries came from foreign investors, said Rubinsohn. Investors seeking this type of property also indicated their expectations for price rises were high.
In line with investor demand, tenant demand for commercial property in the UK increased in the last quarter, which will mean a knock-on effect in rental prices in the upcoming months.