While the “experts” would have you believe the UK is in a post Brexit decline the property market is giving a very different signal. Despite the fact that January is often seen as a quiet month, property prices in England and Wales have increased by £1,029 to a staggering £300,169. When you bear in mind that it was only November 2002 that the UK property market average breached the £150,000 barrier this is a phenomenal performance. So, what else do we know about the UK property market performance?
Prices continue to rise
The average property price in England and Wales has increased by £10,000 over the last 12 months from £291,165. This despite the fact the UK has come under pressure from within and overseas in light of the Brexit vote. Sceptics were adamant that the UK economy would collapse, unemployment would rise and the UK would be set adrift from all major trading markets. The reality so far has been very different with the UK amongst the strongest economies in the Europe.
While London continues to suffer some fallout from the Brexit vote, the East of England has taken the lion’s share of the eye-catching performances. Southend-on-Sea property is up a staggering 14.7% over the last 12 months, Thurrock up 11% and Luton up 10.1%. To give you a comparison, London property prices have fallen by 20.2% over the last 12 months.
New towns showing resilience
Over the last 20 or 30 years we have seen the emergence of an array of new towns across the UK and as an asset group they have seen property prices increase by an average 32% over the last 10 years. This compares to the average property price increase over the same period of 26% although Milton Keynes has shown a staggering 601% increase in property prices from 1986. There is no doubt that an investment in UK property has proved to be extremely fruitful for many people although those looking to climb aboard the property ladder for the first time have struggled of late.
It is also worth noting that despite the doom and gloom surrounding the London property market the average property in the capital now costs in excess of £600,000. Even those looking to move out into the outskirts of London and take advantage of “reasonable” property prices have struggled. The likes of Brighton, Guildford and St Albans have been renowned commuter hotspots for some time and this is reflected in the increase in property prices.
Will there be a Brexit backlash?
While many so-called experts continue to predict an eventual backlash from the UK decision to leave the European Union, nothing has been forthcoming as yet. Indeed just this week the European Union increased its economic forecast for the UK for 2017 from 1% GDP growth to 1.5% GDP growth. There was even an admission that those within the European Union had mistakenly forecast the UK would struggle immediately after the Brexit vote. There is still an expectation that the UK economy will suffer during the Brexit negotiations but so far so good for the UK.
The UK property market is attracting significant interest from overseas investors and if the economy continues to hold up this should continue.