Developer reports long queues as visitors flock to new sites post-Brexit
Redrow says there were “long queues and strong reservations” at four new site openings last weekend immediately after the Brexit vote.
In an upbeat trading statement covering the financial year to the end of June, Redrow said: “Although it is too early to tell whether Brexit will have any effect on future sales, initial feedback is that sites remain busy, reservations continue to be taken and, indeed, we witnessed long queues and strong reservations at new sites launched last weekend.
“The fact remains that there is a long-term underlying demand for new homes following decades of under-supply.
“This chronic shortage of housing leaves market fundamentals unchanged.”
The firm said that the new homes market remained strong during the year, with the value of private reservations at a record £1.56bn, up 46% on 2015 (£1.07bn). The average selling price was £328,500, against £297,300 the year before.
The number of active sales outlets rose from 117 to 128 during the year.
Redrow said that altogether over 1,500 people visited four new development sites last weekend, all in the north.
Visitors included one man who slept overnight in his car to put down a deposit.
Redrow sales and marketing director Dave Bexon said: “While last week’s EU referendum result has thrown the country into political turmoil and a degree of economic uncertainty, our experiences over the weekend suggest that the housing market can – and will – prosper.
“The fact remains that after decades of under-supply the UK faces an acute housing crisis, and we believe this will continue to fuel the demand for new homes.”
Housing market turnover expected to bear brunt of Brexit uncertainty
Transactions are expected to slow rather than house prices fall in the wake of the EU vote, says Hometrack.
Richard Donnell, director at the property analyst, said: “At present we expect housing market turnover to bear the brunt of increased uncertainty rather than house prices.
“Standing back from the immediate turmoil in financial markets, the reality is that the fundamentals of the housing market remain unchanged with record low mortgage rates and a wide imbalance between supply and demand.
“The UK doesn’t have a problem with housing demand. The more important question is how many buyers and sellers feel confident to participate in the market in the near term.”
He was speaking after Hometrack reported that Bristol has become the first city outside of the south-east to see house prices rise at a faster rate than London for more than six years.
Year-on-year house price inflation in Bristol reached 14.1% in May to £250,900, surpassing London growth at 13.8% to £472,100 and Cambridge which was up 13.4% to £410,200.
London was one of eight cities to register slower year on year growth, slowing from 14.2% in April to 13.8% in May.
Large regional cities have registered the highest growth rates over the past three months, led by Liverpool where prices have grown 5.4% to £112,800.
Overall the top 20 cities analysed in the index saw house price inflation rise from 10.8% in April to 11.2% in May.
But this could all be set to change following the EU referendum result.
Donnell said: “House price inflation in major cities outside of London and the south-east, such as Bristol and Liverpool, has been accelerating but it is now expected to slow towards low single digits in the coming months as demand cools on the back of the EU referendum result.”
Aqua Fest on the River
Ely Aquafest is held on the first Sunday in July. This year it's being held on Sunday 3rd July
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Events in and around Ely
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