UK Housing Market Sluggish Following Brexit Vote
Recent data suggests the historic Brexit vote which took place in June is affecting the UK housing market in a substantial way. Evidence is mounting through data which is painting a clearer picture. Overall activity has pumped the brakes in recent weeks leading many experts to believe this may be the start of a cooling off period. The belief stems from lower consumer confidence and numbers of houses being sold.
Remortgage activity is also slowing since the last week of the month of June. Even though fewer remortgage transactions have taken place, those who have taken advantage of lender deals are seeing substantial benefits as a result of acting now. These have been called uncertain times, but many are still obtaining attractive deals with low interest rates and low administration fees.
Home owners who have been sitting on the fence and now finally chosen to seek a remortgage are being rewarded through deals from lenders offering competitive deals.
Those close to the market believe low rates will not only continue, but even go lower. Much talk is taking place regarding the base rate and the possibility of it falling to half of the current rate of 0.5%.
Bank of England Deputy Governor Sam Woods commented on the latest data, saying: "We are just starting to see little bits of evidence around the housing market ... all of that does seem to be consistent with a slowing of that market both in terms of pricing and expected activity.”
There is discussion that lowering the base rate could have an immediate impact on the level of activity across the market.