Recent weeks have seen a dip in the market following Brexit and some house purchase cancellations, but according to property experts, the new housing sector has steadied and should remain strong.
Shares of leading housebuilders, including Taylor Wimpey and Barratt have fallen since the British voted to leave the European Union in the recent referendum.
The Chief Executive of housebuilders Persimmon, Jeff Fairburn, is not dismayed by this negative financial news. Speaking to news agency Reuters in early July 2016, he said:
“There is some uncertainty among people about what’s happened and that’s natural, but we’ve not seen that translate to any significant change in our trading.”
Persimmon specialises in selling lower priced houses to first-time buyers, and there is still a high demand for new houses. Fairburn reported that his company had good sales levels in May and June 2016.
According to George Salmon of the financial investment company Hargreaves Lansdown, there is a shortage of new houses and this has kept prices high and boosted the earning of housebuilders. This situation is unlikely to be affected by Britain leaving the European Union.
The Bank of England base rate is 0.5% as of early July 2016, and the governor of the Bank of England, Mark Carney, has hinted that they will not rise, and perhaps go even lower. This means that mortgage and mortgage protection cover rates should remain low, which will help buyers of new houses.
Though some new homebuyers were put off after Brexit, there are reassuring indications that the new housing market will be resilient to European political change.