House prices have hit record levels with sales in the housing sector hitting a 10-year high, despite fears about the impact of Brexit and pre-election nerves on the economy - a report claims.
In what’s been dubbed a ‘Brexit boom’, the average price of property coming to market in April 2017 rose by £3,547 to £313,666, up by 1.1 per cent on the previous month. The average asking price in March 2017 was £310,108.
The number of sales agreed this spring was the highest since 2007, before the credit crunch. Sales are up 10 per cent on spring 2016.
Strong activity in the first-time buyer sector is thought to be driving soaring house prices, with average asking prices for homes of two bedrooms or less up 6.5 per cent annually to a new record of £194,881.
Interestingly, April 2017’s average house price increase was lower than the 1.6 per cent average for April over the last seven years, while the overall pace of house price increases have slowed to 2.2 per cent, the lowest for four years.
Natalie Bradley, Head Conveyancer at the national law firm Stephensons said: “Caution triggered by fears about Brexit - combined with pre-election jitters - was expected to cause a significant slow-down in the market. Ultimately, however, this simply hasn’t happened nationally.
"Instead we are seeing record house prices and sales ‘boom’ in some areas, largely driven by first time buyers.
“In spite of a nervous market, two things remain constant: demand is high and supply remains insufficient to deal with it.
“As such, whenever property does become available, it is largely over-subscribed - particularly in urban and sub-urban areas – which in turn drives up prices as buyers compete over limited stock.
“While we cannot be sure if the upcoming election will have an effect on the housing market – particularly ahead of the final result – but if so, even that is unlikely to derail the current boom in prices.”
For more information visit www.stephensons.co.uk/site/individuals/srvhouse/houseoverview/