09.09.2016 Post-Brexit property sales remain steady

09.09.2016 Post-Brexit property sales remain steady

Property sales slightly slowed down in the first full month since the Brexit vote, according to HM Revenue and Customs. Only 104,200 homes were sold in July, which were 16,000 less than the same period last year.

Nonetheless, people in general, particularly home builders whose share prices dropped because of the Brexit effect, are optimistic about the UK property market with strong believe that the market will rebound in a year’s time. House Builder Persimmon recorded a 29% increase in profit in the first half of 2016.

To rejuvenate the market and subsequently revive the economy, Bank of England cut interest rates to 0.25% in August.

A research done by Moneyfacts suggested that a number of first-time buyers (FTB) are vying to purchase a home when the market slows down when both the housing prices and interest rates drop. However, their dreams could hardly come true as money lenders are turning down mortgages that required only 5% deposits. The research also suggested that the number of home loans offered to FTBs had been growing to a peak in March of 270, but had dropped to 225 since.