Buyers rush to move before Brexit with 'summer surge' in property sales

ST IVES, ENGLAND - OCTOBER 10:  Properties in the town of St Ives, which has introduced measures to limit the number of second homes, are seen in St Ives on October 10, 2017 in Cornwall, England. Following on from St Ives the picturesque Cornish coastal fishing village of Mevagissey has also submitted plans to Cornwall Council to block outsiders buying new-builds to use as holiday homes in an attempt to give local first-time buyers better chances of getting on the property ladder rather than being outbid by wealthy second home owners. The village's Neighbourhood Development Plan has highlighted that currently twenty six per cent of the homes in Mevagissey are holiday homes with average prices, according to Rightmove, of £299,587, nearly £50,000 more than the Cornish average of £250,000, and 20 times the local average wage of £15,458. It also noted that although since 1930 the buildings in the village have more than doubled, the permanent population of Mevagissey has actually fallen over the last 200 years. If the plans are approved they will be returned to the village to be voted on in a referendum and will follow attempts by other communities in Cornwall which have introduced new-build bans including most notably St Ives.  (Photo by Matt Cardy/Getty Images)
St Ives, which has seen its property prices soar in recent decades as a popular destination for second-home owners. Photo: Matt Cardy/Getty Images

Summer property sales are at a four-year high in Britain as buyers rush to move before the Brexit deadline, according to property site Rightmove.

Miles Shipside, a Rightmove director and housing market analyst, said a “summer surge” was clear as buyers increasingly saw the 31 October deadline for Brexit as “one to beat” in case it hit the market.

He said buyers were going “bolder and earlier” than usual at a typically quiet time of year, leaving asking prices 1.2% higher than a year ago.

The number of summer sales was up 6.1% on a year ago and the highest since 2015, the property site’s figures suggest.

READ MORE: CBI chief warns Britain can never be ready for a no-deal Brexit

Asking prices still slipped 1% lower between July and August, but it marked a significantly smaller increase than the 2.3% drop at the same time last year.

The average asking price in the UK is now £305,500 ($367,901), according to Rightmove, down from £308,700 a month ago.

“We often see an autumn activity bounce, but perhaps this year’s political activities have brought that forward into a summer surge as buyers have gone bolder and earlier than usual,” said Shipside.

“Surprisingly there seems to be a bit of a summer buying spree, despite it normally being a quieter time of year.

“Whilst another approaching Brexit deadline is now nothing new for prospective buyers, this one may seem more definite, and therefore one to beat, with the Government regarding this one as ‘do or die’.”

READ MORE: What a no-deal Brexit means for house prices

He added that buyers appeared to have “cottoned on” to the fact it can be a good time of year to buy, with less competition and sellers often willing to accept lower prices.

The Office for Budget Responsibility (OBR), a government watchdog, warned in July property prices could slide 10% on a no-deal Brexit, which would send shockwaves through the UK economy.

The Bank of England said last year a worst-case scenario could see the market crash further as Brexit batters UK firms and workers, with prices sliding 30%.

READ MORE: Meet the Brits stockpiling for a no-deal Brexit