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House prices post-Brexit: 'More of a soft landing than a crash'


07-27-2016

 

Growth slowing in most areas but not negative yet, says Royal Institution of Chartered Surveyors expert

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House prices post-Brexit: 'More of a soft landing than a crash A picture is emerging in the housing market since the Brexit vote of lower transaction volumes and a slower pace of growth, but experts say there have so far been few signs of a crash.

Jeff Matsu, a senior economist at the Royal Institution of Chartered Surveyors (Rics), told the Daily Express property prices are softening across the country since the referendum but are mostly still in positive territory.

"We are not seeing a price decline, other than in London," he said. "Price growth is moderating. It's still increasing, but less so than it was."

A survey of Rics members published earlier this month found most estate agents and surveyors expect prices around the UK to dip in the next three months and for up to 12 months in London. Within five years, however, they expect them to be 14 per cent up from current levels.

Jonathan Hopper, the managing director of UK buying agents Garrington Property Finders, said the market is seeing "more of a soft landing than a crash".

"It's very much case by case. The overarching message is expect, in the short-term, further softening of prices and a slowdown in transaction volumes," he said.

Meanwhile, a separate survey out today from Lloyds Bank highlights one of the enduring inflationary effects on house prices in the country - the "Waitrose effect".

In short, proximity to a supermarket increases the value of a home by an average of 20,000 but this difference can almost double if the store is one of the more upmarket brands.

Houses with a Waitrose within the postal district are reportedly worth 38,666, or ten per cent, more than those in the surrounding area. This was down slightly from 12 per cent last year, the Daily Telegraph says.

Living near a Sainsbury's or Marks & Spencer commands a premium of 27,000, while a Tesco brings 22,000. In contrast, living near an Aldi adds 1,300.

Lloyds Bank mortgage director Mike Songer said: "Of course, there are many other drivers of house prices beyond having a supermarket on your doorstep, but our research suggests that it is a strong factor."

www.theweek.co.uk/

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