Bank of England says housing transactions 'resilient' despite Brexit

The Bank of England says there has been a dip in the housing market activity after the Brexit referendum result - but transactions have so far proved to be “resilient” and stronger than some expectations. 

In a broad-ranging report on the economy since June 23 - the first of the Bank’s monthly surveys since the Brexit decision - little evidence was found that investment decisions and wider economic activity had slowed.

“There had been little evidence of any impact on consumer spending on services and non-durable goods, although there were some reports of consumers becoming more hesitant around purchases of higher-value goods.”

The Bank of England said its regional agents across the UK had noticed a “business as usual” response by most companies, despite the initial shock at the referendum result.

“The majority of firms spoken with did not expect a near-term impact from the referendum result on their capital spending. But around one third expected some negative effects over the next 12 months, with reports of a ‘risk off’ approach to expenditures and some imminent plans for spending slipping” says the report.

Former RICS residential chairman and north London estate agent Jeremy Leaf responded to the BoE report by saying that “on the ground we have seen determination on behalf of people to negotiate hard and a new sense of realism emerge.”