More evidence that Brexit impact on market is less than expected

Brexit impact

Brexit impact

There has been another indicator that the Brexit effect on the UK housing market has been less severe than some anticipated.

Bovis Homes, reporting its figures for the first six months of this year to the City, says there has been a “resilient” level of interest from home buyers after the EU referendum.

Bovis reported a 15 per cent rise in pre-tax profits for H1, taking it to £61.7m compared to the £53.8m. The company says it saw a slowdown in home buyers reserving homes in July just after the referendum, but that has now improved.

“The market at the moment does not indicate any negativity, it feels like a normal market” says the builder’s chief executive, David Ritchie.
“While it’s too early to judge the impact of the EU referendum and the Bank [of England]’s monetary policy response on the UK housing market, the underlying market fundamentals for UK housing remain positive. We’ve been pleased with the resilient level of interest shown by potential home buyers contacting us” he adds.

The significant majority of Bovis’ homes are built in southern England but outside of London. It also increased the number of homes it completed by five per cent to a record 1,601 properties and the firm says it has sold 90 per cent of the homes it expects to market in 2016.

Yesterday Rightmove issued its latest house price index, suggesting the market’s movements were typical for this time of year, despite the Brexit vote.

Neil Newstead, FARLA MNAEA
CEO – Oakfield Estate Agents

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