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Brexit vote delivers £6,000 blow to first-time buyers

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Written by: Yusuf Tamanna
20/09/2016
The rebound in property prices post Brexit threatens to make it even harder for first-time buyers to get on the property ladder, according to Rightmove.

Prices have increased by 0.7%, which is an uplift of £2,277 in September 2016, down on the 1.2% seen in August.

Though the rise illustrates a positive picture in a post Brexit property market and demonstrates growing stability, Miles Shipside, director of Rightmove thinks this is another blow to first-time buyers.

“While the referendum result has created additional downward price pressure in some upper segments of the market that were already slowing, those who do not own a home and arguably have the greatest housing need are finding it harder to achieve their goal in the post-Brexit-vote aftermath.”

Asking prices for properties popular with first-time buyers, so two-bedrooms or fewer, have jumped by over £6,000 in the past month.

Jeremy Duncombe, director of Legal and General Mortgage Club, said: “House prices are continuing their unstoppable climb to overwhelming, and for many aspirational first time buyers, unreachable heights. The government can hopefully use the Autumn Statement to deliver a clear plan of action which prioritises the need to boost the supply of affordable homes.”

The picture is different for those already on the property ladder. The initial uncertainty of Brexit has enabled owners of high value properties to be more willing to negotiate prices, with many existing homeowners able to trade up.

Despite this the outlook is in general a positive one. Seven out of ten regions in the UK have recorded either monthly rises in new seller asking prices or a complete standstill. Rightmove also recorded an uplift of 8% website visits in the first full week of September.

As people come back from their summer holidays and the traditionally busy Autumn season approaches, this is an encouraging outlook with the industry shaking off the last ripples of uncertainty in the wake of Brexit.

“Buyers are still looking and inquiring, but there are limits on their willingness or ability to pay over the odds so sellers should be wary of over-pricing unless their local market can really justify it,” Shipside said.

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