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Is the Property market bouncing back ahead of Brexit?

Demand from buyers and sellers increases as Brexit fatigue fades.

A new property report reveals the housing market has seen a noticeable resurgence, as both buyers and sellers shake-off so-called “Brexit fatigue”.

According to the figures from NAEA Propertymark, the UK’s leading professional body for estate agents, demand for property from prospective buyers reached an eight-month high in May. The number of property hunters registered per estate agent branch increased by 16 per cent in May – rising to 307 from 265.

The supply of available housing has also jumped to its highest level since December 2018 – increasing from 35 properties available per member branch in April, to 41 in May. With this said, housing demand is actually down year on year by 13 per cent from May 2018, when there 351 house hunters per branch.

The professional body for estate agents believe that waning so-called “Brexit fatigue” is the reason buyers and sellers are no longer waiting for the outcome to decide their next move.

While many had expected Britain would leave the EU in April, uncertainty over the future continues and a new expected leaving date of Halloween has now been set. 

Mark Hayward, chief executive of NAEA Propertymark, said: ‘It is encouraging to see the housing market bouncing back, with supply and demand rising to the highest levels seen since last year.

‘It’s evident that buyers and sellers are no longer waiting for the outcome of Brexit and want to get things moving, particularly as many sellers are realising that it’s a buyers’ market in certain areas of the country.’

In Birkdale, Southport, a case in point is the stunning Birkdale Place development by LPC Living.  A flurry of interest has seen sales enthusiasm rocket as property hunters refuse to wait as they seek both quality and value in such uncertain times. 

The number of property transactions has also increased annually with an average of eight sales agreed per branch in May 2018. 

Patrick Alvarado, director of central London estate agency Nicolas Van Patrick, said: ‘Buyers are beginning to re-emerge as they have had enough of putting decisions on hold while Brexit is no nearer to being resolved. 

‘There may also be a feeling that they can negotiate the bottom of the market before prices start to go up again’ There is still a scarcity of stock on the market and certainly not enough to meet all the pent-up demand. 

‘But with buyers starting to transact again, if you have a good property priced at the right level you will sell it, and if it is really good it may even go to sealed bids’.

The number of sales made to first-time buyers in May decreased marginally, falling from 27 per cent in April, to 26 per cent. Furthermore, last month just five per cent of properties sold for more than the original asking price, with 81 per cent selling for less.  

Hayward added: ‘More than eight in 10 properties sold for less than the original asking price in May, which shows that estate agents, with buyers and sellers, are successfully negotiating a property sale, with them coming to an agreement on the value of the home.’

A recent property report released by the NAEA Propertymark in May has revealed that the housing market appears to be making a comeback, as demand from prospective buyers reaches an eight-month high and both buyers and sellers shake-off so-called Brexit fatigue.

The chief executive of NAEA Propertymark, Mark Hayward, has said “It is encouraging to see the housing market bouncing back with supply and demand rising to the highest levels seen since last year”

In May the amount of house hunters registered per estate branch rose by 16 percent from 265 to 307, indicating that both buyers and sellers are no longer waiting for the outcome of Brexit to decide their next move as uncertainty over the future rumbles on and a new expected leaving date of the 31st October has now been set. 

However it is worth noting that it’s normal for prices to start improving in April anyway, so this indicates a return to a more usual seasonal pattern.

The supply of housing available housing has also leaped to its highest level since December 2018 -Up from 35 properties available per member branch in April to 41 in May. However, overall, housing demand is actually down year on year by 13 percent from May 2018 when there were 351 house hunters per branch. 

The number of property transactions has also increased annually with an average of eight sales agreed per branch in May 2018 and nine in May 2019. Last month, just five per cent of properties sold for more than the original asking price, with 81 per cent selling for less.  

Hayward added: ‘More than eight in 10 properties sold for less than the original asking price in May, which shows that estate agents, with buyers and sellers, are successfully negotiating a property sale, with them coming to an agreement on the value of the home.’

However, the number of sales made to first-time buyers in May decreased marginally, falling from 27 per cent in April, to 26 per cent.

This is a year on year increase of two percent from 24 percent.

Patrick Alvarado, director of central London estate agency Nicolas Van Patrick, said: ‘Buyers are beginning to re-emerge as they have had enough of putting decisions on hold while Brexit is no nearer to being resolved. 

‘There may also be a feeling that they can negotiate the bottom of the market before prices start to go up again’ There is still a scarcity of stock on the market and certainly not enough to meet all the pent-up demand. 

‘But with buyers starting to transact again, if you have a good property priced at the right level you will sell it, and if it is really good it may even go to sealed bids’.