The UK will leave the EU on January 31 after Prime Minister Boris Johnson’s Brexit deal got approved this week. The success comes three and a half years after Britain voted to leave the bloc and Brexit is already having it’s impact on the housing market.
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Brexit is proving a positive contributor to the housing market.
Most markets do not like uncertainty so with Brexit finally achieved, the property market is expected to flourish.
According to Rightmove, sellers felt more confident about the outlook for the housing market after the general election.
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This month, 65,000 properties were put up for sale and the average asking price for a property in Britain was £306,810.
This is £6785 or 2.3 percent higher than it was in December and the biggest rise for the period since the property website started its house price index in 2002.
Miles Shipside, a director at Rightmove said the election result had provided a “window of stability” for potential movers after a period of instability since the Brexit vote, which had caused some to put off a move.
He said: “The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the EU referendum caused some potential home movers to hesitate.
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“There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market.
“While there may well be more twists and turns to come in the Brexit saga, there is now an opportunity for sellers to get their property on the market for a spring move unaffected by Brexit deadlines.”
Rightmove also revealed that after the election on December 12, between 13 December and 15 January, the number of sales agreed increased by 7.5 percent compared with the same period a year earlier.
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Director of London estate agency Benham and Reeves, Marc von Grundherr, said: “The coal that fills the furnace of the UK property market is very much market sentiment and it doesn’t matter what your stance is on Boris or the election result, even the slightest inkling of returning market stability has been enough to reignite the fires both where buyer and seller activity are concerned.
“There was an instant uplift in buyer commitment following the result and those acting fast enough were able to secure some very favourable deals.
“However, as is always the case, a tsunami of buyer demand soon spurred an increase in asking prices and savvy sellers were quick to ride the turning tide to ensure they secured the best price for their property.
“This rather emphatic return to form was always on the cards given the resilience of the market and we shouldn’t be surprised if this is only the start of a very positive new decade for the UK property sector.”
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Founder and CEO of GetAgent.co.uk Colby Short said the property market had been heavily impacted by the political uncertainty.
He described the election as a “release point” that has seen the housing market come back to life.
He said: “The property market has sat in a state of hibernation while political uncertainty has remained prevalent, but all the while, both buyer and seller sentiment has been building like a coiled spring.
“The election has proven to be the release point for this built-up tension, with the market exploding back to life almost instantly and both buyers and sellers jumping back in at the deep end where enquiries and asking price increases are concerned.
“This has helped to bump start a market that has been stuttering over the last three and a half years and while we shouldn’t try and run before we can walk, it does show promise for the year ahead.”