1888 Press Release – Burton Mills: Strong growth in UK property prices may indicate that the dip caused by the Brexit vote has bottomed out.
In the 3 months to October, UK property prices rose at the most rapid pace since February of this year and economists at Taipei, Taiwan based wealth management firm Burton Mills believe that last week’s interest rate hike by the Bank of England is not likely to counter the effect on prices caused by a lack of property on the market.
Property prices rose by a yearly 4.5 percent in the period from August to October and gained pace from a 4 percent increase in the three months to September. This increase was in keeping with predictions by Burton Mills.
The third consecutive month of increased pace of property price rises may indicate that the drop experienced after 2016’s Brexit referendum may have leveled out.
The house price index had been increasing by up to 10 percent each year before the Brexit vote when it slowed to just more than 2 percent in July of 2017.
Elevated house prices will mean that fewer people are able to afford to purchase their own homes. This may force finance minister Philip Hammond to support additional home building when he reveals the Government’s budget strategy later this month.
Last month alone, property prices increased by 0.3 percent, 0.5 percent less than in September but slightly more than was forecast by economists.
A Burton Mills economist stated that the absence of properties on the market, low fixed home loan interest rates and robust employment growth would continue to boost property prices even as the UK’s economy slows leading up to the country’s departure from the EU.