Vanessa Hale
Director, Research
Prolonged periods of low commodity prices and slowing growth in emerging economies continue to raise concerns of a global economic slowdown.
On 23rd June 2016 the UK voted to leave the European Union (EU). Following the news, the country is expected to remain in a prolonged period of uncertainty until new agreements are ratified. As a consequence, financial markets are likely to be volatile and the pound is expected to fluctuate and may depreciate further. Despite heightened economic and political uncertainty, the outlook for the UK economy remains reasonable, whilst less positive than previously.
Looking to the residential property markets:
The national average house price has grown by 2.5% for 2016 and now stands 5.2% higher than a year ago. Additionally, the Nationwide House Price Index saw quarterly growth of 0.9% in the second quarter of 2016.
Continued uncertainty surrounding the implications of Brexit and resulting concerns over the performance of the domestic economy have the potential to further increase investor and consumer uncertainty, and adversely impact the domestic economy, upon which the national housing market is heavily reliant. However, demand for housing continues to outstrip supply and with employment at record highs, we expect activity and price growth to remain reasonable across the UK.
For further reading, please see the full Regional Residential Quarterly Summer report.