A desperate shortage of homes on the market has prevented a post-Brexit-vote slump in property prices over the summer, a survey shows.
Average prices across Britain grew by 0.6 per cent in August to £206,145 — a 5.6 per cent increase on the same month last year, according to latest figures from mortgage lender Nationwide.
The building society’s chief economist Robert Gardner that said that the pick-up was “somewhat at odds” with signs of a slowdown in demand from nervous buyers since the June 23 referendum.
But he added: “Surveyors report that instructions to sell have also declined and the stock of properties on the market remains close to 30-year lows. That helps to explain why the pace of house price growth has remained broadly stable.”
North London estate agent Jeremy Leaf said: “While the increase in prices in August is encouraging and a little surprising, when you look behind the figures it becomes apparent that most of it is based on shortage of stock, which we are also finding on the ground.
“It is important to try to concentrate more on the level of transactions rather than house price moments, which can give a false sense of security.
“We are finding that an appetite to get on with buying and selling from those returning from holiday has been encouraging lately, and we hope that continues into the autumn. People are negotiating very hard to make deals that are being done happen.”
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