Brexit not affecting UK property market

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Brexit not affecting UK property market

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Research by Knight Frank has highlighted how optimism for the future of the UK property market has risen month-on-month. 

Summary:

  • Knight Frank’s House Price Sentiment Index has been above 50 for four months in a row, displaying growing confidence in the UK property market
  • Future sentiment, measuring what households think will happen to property prices in the near future, has risen to its highest level since the EU referendum
  • The window of investment opportunity, created by the pound hitting its lowest level for 31 years, may begin to close in 2017 

Confidence in the UK property market continues to grow as the nation adjusts to the reality of Brexit.Streaming and download The Accountant (2016)

Households across the UK are more optimistic about property prices than they were just after the country voted to leave the European Union, the latest sentiment index shows.

The House Price Sentiment Index (HPSI) from Knight Frank and IHS Markit has been above 50 for four months in a row, following a low recorded in July immediately after the vote for Brexit was revealed.

Although November’s reading was a slight decrease from the 55.7 recorded in October, the outlook for the future was more positive than before. November is also the second consecutive month during which household perceptions eased.

The future House Price Sentiment Index, which measures what households think will happen to the value of their property over the next year, rose in November to 64.6 from 62.9 in October.

Grainne Gilmore, Head of UK Residential Research at Knight Frank, said: “Sentiment in the housing market is finding a post-EU vote stability. While households are confident that the value of their home is rising and will continue to do so over the next 12 months, they expect the velocity of this change to be lower than before June’s vote.”

With the pound falling to its lowest level in 31 years, leaving UK property the most affordable for investors in dollar-pegged countries in years, a window of opportunity has been created for investors following the vote for Brexit. However, with households across the nation expecting property prices to rise in the near future, this window is already beginning to close.