Survey: UK Home Prices up in September Post-Brexit

House Price in United KingdomThe Royal Institution of Chartered Surveyors’ survey revealed that home prices in the U.K. reached plus 17 in September in the poll’s price indicator, The Wall Street Journal reported.

The survey showed that more members of the surveyors institution saw an increase in prices compared to August and July. The increase also represented a bigger percentage of real estate brokers reporting higher prices in comparison to those that reported a declined.

As property continues to be a good source of investment returns. For an investment broker company, the increase indicated good news since the price movement in September was attributed to a larger demand for residential properties in the U.K. for the first time since 2009.

First-Time Buyers

Home prices are not the only thing that is on the rise. Data from the Council of Mortgage Lenders revealed that homeowner loans for residential property acquisitions rose 11 percent in August year over year, amounting to £12.2 billion.

Paul Smee, the council’s director general, said that the home purchase activity’s rebound from a drop in July reflected a resilience amongst first-time home buyers. Mortgage rates staying at or near historic lows should also support a continually strong demand for home ownership in the next months, according to Smee.

Brexit Backlash

Following the increase in U.K. home prices, Royal Institution of Chartered Surveyors Chief Economist Simon Rubinsohn noted that the market seems to be recovering after certain challenges encounter during spring and summer, particularly the EU referendum vote in June.

However, the Bank of England predicted Brexit to have a negative impact on the residential sector, with prices expected to fall in 2017 and lower new housing investments.

Harley Investments Ltd. may agree that real estate is just one of many investment opportunities that usually provide high yields and low risk at the same time. If you’re looking for other alternatives, it’s best to contact an investment broker company with a diverse team of experts.