Andrew Perry, Residential Partner from the Ilminster office discusses the outlook for UK property and how the market is fairing a year on  from the referendum.

It’s the start of the holiday season, a period often known for having an impact on both prices and activity, but across the UK house prices are still more looking more positive compared to the same month last year, (which suffered a fall of 0.9% after the referendum).

It certainly feels like the UK housing market is ‘shrugging off’ the concerns echoed across the wider economy.  While this is a positive sign, it is also important to be mindful that the 2016 market, fresh  from the Brexit ‘shockwave’ was a muted one.

That aside, we are now half way through 2017 and the market remains robust. There are various factors which may be helping, including low  Interest rates and high employment. At the same time demand for housing  remains strong, only exacerbated by the shortage of available property for sale. In essence, compared to the same period around the referendum a year ago, more sellers have come to market and more buyers are buying.

Despite this, the market remains price ‘sensitive’ and the contributing factors are not entirely Brexit related. Wage growth versus cost of living is down, consumer credit is tightening, stretched  affordability and with a potential rise in interest rates looming, the  pace of price rises is limited.

For sellers coming to the market at this time of year, house prices need to be competitive. Especially now the spring enthusiasm has ‘sprung’ and potential buyers are more focussed on holiday plans than buying houses.

Across the southwest, there is still a positive uplift though and the average house price has risen from £300,000 in July 2016 to £312,000 in July 2017.

While there is no doubt that Brexit continues to have an impact on our economy, for British house buyers at least, it seems that they are simply getting on with the matter in hand and moving.

If you are looking to buy or sell your house, it’s best to speak to an expert, get an understanding of the local market and take advice on how best to price your property.