Britain’s property prices have shown resilience post-EU referendum, according to the latest figures from Nationwide.
Prices rose 5.6 per cent on an annual basis in August, up from 5.2 per cent in July.
However, the findings, published in Nationwide’s House Price Index, also revealed housing market activity had slowed down in recent months while the number of approved mortgages fell to an eighteen-month low in July.
Robert Gardner, Nationwide’s chief economist, predicted this was to do with “uncertainty surrounding the EU referendum and the introduction of additional stamp duty on second homes.”
House prices have remained stable against a backdrop of a low amount of stock on the market, which remains close to a 30-year-low.
Decline in demand is seemingly being matched by the falling number of properties.
Rob Weaver, director of investments at property crowdfunding platform Property Partner, said: “Increasingly, it’s looking like the predicted collapse of the property market post-Brexit may not happen.
“The property market has stood up to a strong headwind of political and economic uncertainty, and prices haven’t collapsed as many said they would after the UK voted to leave the EU.
“The interest rate cut earlier in the month has given the market a confidence boost and eased any post-Brexit jitters.”
Despite the slight house price growth, the outlook for whether demand will rise remains unclear.
Consumer confidence has fallen sharply, and the Bank of England has predicted the economy will show very little growth over the next year.
However the Nationwide Index draws attention to the new term funding scheme, which will give lenders guaranteed access to low-cost funding from the Bank of England to pass on to borrowers.
Mr Weaver added: “It’s still too early to know what the full impact of Brexit will be on the housing market but for the time being, property prices are showing a degree of resilience.”
Referring to comments by Andy Haldane over the weekend, he added: “If the Bank of England’s chief economist says that owning property is a better bet than a pension, that’s a vote of confidence for the stability of the property market.
“At the very least it reinforces how many people gravitate towards bricks and mortar in times of economic or political uncertainty.
“Moreover, the government is readying a multi-billion pound package to support housebuilding and stimulate the economy, which demonstrates the importance of the housing market, and further strengthens its longer-term prospects.”
