Brexit uncertainty weighs on house purchases, RICS

Brexit uncertainty weighs on house purchases, RICS

house prices

New data on Thursday revealed that house. buyer enquiries have fallen as Brexit uncertainty discourages people from house purchases.

The Royal Institution of Chartered Surveyors’ (RICS) UK Residential Market Survey for the month of September revealed that a more cautious approach from buyers is visible over the month, and the new buyer enquiries net balance dropped to -15%.

Additionally, in September, a decline was reported in home listings coming onto the market.

The new instructions net balance dropped to -37% for the month, which is the weakest reading since June 2016, according to the data.

Indeed, as the nation has now entered the month of the extended Brexit deadline, uncertainty prevails.

Just yesterday the UK Pound saw a slump to its lowest level in over a month amid an uncertain Brexit outcome.

“There are good reasons for thinking the latest dip in both buyer enquiries and vendor instructions is a response to the endless wrangling about Brexit, as the October 31st deadline approaches,” Simon Rubinsohn, RICS Chief Economist, commented on the data.

“Indeed, much of the commentary from respondents based further away from London and the South East remains relatively sanguine, which is also reflected in some of the metrics capturing expectations,” the Chief Economist continued.

“However, unless there is a speedy resolution to the ongoing impasse it does seem inevitable that the stand-off between purchasers and sellers will deepen making it harder to complete transactions. This will not only be a direct hit on the housing market itself but could have ramifications for the wider economy as the normal spend on furniture, fittings and appliances that typically accompanies a house move is also put on hold.”

Brexit uncertainty has also weighed on other sectors, with retailer John Lewis warning that a no-deal departure from the European Union will have a “significant” impact on its business.