Reflecting on the May Halifax House Price Index released today, Rob Weaver, Director of Investment at property crowd-funding platform Property Partner, suggested the current market could only become predictable only after the forthcoming EU referendum has passed.
Mr Weaver commented:
“The house price volatility around April’s stamp duty hike has made 2016 a difficult year to predict. But the yoyo effect looks like it’ll settle, at least until all the uncertainty over the EU referendum ends.
“Activity in the housing market has seen a dramatic slow down. This month’s big vote has left many sellers holding on and many buyers holding back to see whether we’re in or out. It’s become a high June Brexit stand off.”
“In the short-term, a vote to remain in Europe should mean the same old, same old – a relentless rise in house prices. But if we decide to leave, we could see a corresponding correction.
“Post-June, particularly in London and the South East, the market will become relatively more predictable and activity should pick up.
“A cocktail of historically low interest rates, strong employment and rises in real earnings can only mean one thing. And until the perennial problem of weak supply is adequately addressed, prices will keep marching upwards.”