Property prices: London most exposed to post-Brexit

tremors
Monday 25 July 2016
http://pacificenergyassociates.com/news/property-prices-london-most-exposed-to-postbrexit-tremors/

London faces the prospect of slower house price growth after data showed new listings
were outpacing sales even before the Brexit vote.
A report on housing market activity across 20 British cities, focussing on the three months
to mid-July, says new properties hitting the London market rose by 15 per cent for the past
year.
However, there was a fall of eight per cent in the number of sales amid anxiety the market
was overheated along with the effects of a hike in stamp duty for larger and second homes
and the referendum result.

New supply has been rising by ten per cent on average in other cities, but this is from a
relatively low base. Sales rates have also, in contrast, been either flat or rising. Manchester,
for example, saw a seven per cent increase while there was even more in Birmingham.

"This analysis shows how recent sales momentum in regional cities and higher house price
growth appears to have held up over the referendum period," says Hometrack.
"In contrast, the headwinds facing the London market ahead of the vote have resulted in
more supply and relatively fewer sales, pointing to slower house price growth in the months
ahead."
Although the data contains around a month of post-EU referendum figures, Hometrack says
is too early to draw conclusions on its effects and that housing market data tends to lead
actual movements in trends by two to three months.
"Our view remains that sales volumes are likely to slow and price growth will moderate over
the second half of the year," it adds.
Hometrack's main monthly update on house price trends in urban centres found the annual
rate of growth was the same in June as in May, at 10.2 per cent. The UK-wide average was
8.6 per cent.
Bristol led the way last month, with a year-on-year rise of 14.7 per cent, while Aberdeen,
the hub for the hard-hit UK oil and gas sector, was the only city to record a negative growth
rate, hitting minus 8.2 per cent.
The average city house price is 240,500, above a wider nationwide mean of 202,000.
London remains by far the most expensive region with an average of 476,800, compared to
a much more affordable 112,200 in Liverpool.