The National Association of Estate Agents’ (NAEA) June Housing Market has revealed that immediately following the EU referendum result, estate agents witnessed uncertainty from sellers, and supply fell momentarily.
This contrasts with the period in June approaching the vote, when demand for housing, supply of available properties, and the number of sales going through were stable.
In June, estate agents saw an increase in demand overall, suggesting buyers weren’t fazed by the risk of Brexit in the lead up to the vote. There were an average 330 house hunters registered per member branch last month – an increase of 9% from May, when 304 buyers were registered, the lowest number recorded since November 2013. However, although June saw growth in the number of prospective buyers, demand still remains low in comparison to June last year.
However, instantly following the Brexit result, 57% reported a drop in demand from prospective buyers and 58% saw supply fall in the week immediately following the vote. However, the NAEA says it is expected this will level out in July.
First-time-buyers were not impacted by the Brexit result. Immediately following the result only 28% of NAEA agents witnessed uncertainty from the group, while 30% of total house sales in June were made to first-time-buyers, the highest number of sales since October last year.
The Brexit vote did not affect the number sales that completed in June either, with a total of eight sales completing per branch last month – a figure which has not shifted from May. Further to this, the supply of available housing also remained the same – with an average of 37 properties registered per member branch in June.
Mark Hayward, managing director, National Association of Estate Agents, said: “In periods of extreme political and economic uncertainty, the housing market will always respond. However, it’s a relief to see that looking at the whole month overall, buyers were still keen to buy, sellers were still keen to sell and sales were still going through at the same level as we’d expect. It’s only natural that immediately following the vote supply fell but our figures show that the lead up to the vote wasn’t all doom and gloom, which should be a good indication of the months to come.
“We remain upbeat and need others in the industry to do so as well. The new Housing Minister confirming his commitment to building £1m new homes will be encouraging for many buyers, especially those looking to buy their first home. Hopefully we should soon see housing market confidence bouncing back to the levels seen pre-Brexit.”