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The investment property market has slowed due to uncertainty surrounding Brexit according to the latest report from NAEA Propertymark.
The number of prospective property buyers registered per estate agent branch decreased by 13 per cent on average last month, from 338 in September, to 294 in October.
This figure is the lowest October number recorded since 2012 when 265 were registered per branch on average.
The number of sales recorded per branch in October also fell on a monthly basis, from 9 in September to 8 in October.
The supply of properties available also decreased by 13 per cent in October; falling from 46 in September, to 40 per branch on average. This is the same level reported in August, when the heatwave triggered a market lull.
The falls were partly blamed on the uncertainty caused by the ongoing Brexit saga, with many buyers and sellers holding back to see what happens.
On one bright note, since the level of sales to first-time buyers hit a three-year low in August (20 per cent), the percentage of properties sold to the group has been on the rise – increasing from 22 per cent in September to 23 per cent last month
Mark Hayward, Chief Executive, NAEA Propertymark said: ‘Last month’s findings prove that uncertainty surrounding Brexit is having an impact on the sector. It’s possible that many buyers and sellers are putting their plans on hold while they wait for clarity on what the UK’s future relationship with the EU will mean for them and the property market.’
He continued: ‘We’re also entering a quieter period seasonally, where we typically see the market slow down as people put their moving plans on hold until the New Year. With fewer prospective buyers interacting with the market, it’s important those currently trying to sell their home ensure it is priced competitively and is presented in the best possible way.’