Has Brexit affected the housing market?

10 Nov 2016

June 23rd was an historic date for the UK, as we as a nation made the bold decision to leave the European Union.  This will have a huge impact on the economy and how the country is run.  It may well have an impact on the housing market as well.

We had plans to launch the Carleton Manor development well before the rumblings of a referendum occurred.  Brexit wasn’t going to curtail our plans as we’ve found that in the past, UK trends are often somewhat diluted by the time they reach us here in Cumbria.  During the recession, it was no secret that the housing market was seriously affected, but it did take a while to filter through to us and when it did it was not as severe as many parts of the UK.

We think this will also be true of Brexit.  We didn’t see sales or enquiries change significantly in the run up to referendum vote, though we were aware of the cautious approach taken by many due to the uncertainty the vote.  Inevitably people were cautious as none of us knew what the future would hold either way – not even those campaigning for our votes!  We still don’t really know what Brexit will mean going forward, but following the result and the immediate assessment, we saw our enquiry levels and sales increase. New reservations were taken at our Carleton Manor Park development and we heard from those with existing reservations that offers had been accepted on their own properties. All of which, has provided a very positive few months for us post-Brexit vote at a time that, traditionally, we would expect lower activity.

According to recent reports in the news* The U.K. housing market strengthened in September and a shortage of properties for sale persisted.  The economy has proved more resilient than many forecast, while mortgage rates have fallen to record lows following the Bank of England’s interest-rate cut in August.

There is still a demand for properties in the UK and therefore new developments like Carleton Manor Park in Penrith are proving popular.  At Cumbrian Homes we can’t say that Brexit has not affected our business, as it has not happened yet! We can say we are cautiously optimistic about the next 18-24months as we all begin to find out what type of Brexit we will have. At the core of our optimism is the fact that high quality homes in sought after areas will always be in demand. In addition, the underlying demand for housing is still strong across the UK and, in our area particularly, we know supply is still a long way short of the levels required to meet demand which also provides confidence locally.

If you are interested in seeing what we have to offer, please contact us on 01768 840840 or visit our marketing suite and showhome at our latest development at Carleton Manor Park, Penrith.