UK residential market still sound despite potential 'Brexit'

THE UK residential market is in healthy condition as we enter the important spring season. Most indices show price growth in the order of 6 per cent per annum nationally; record employment levels support modest but stable gross domestic product growth of 2.2 per cent per annum. Aided by depressed oil prices, inflation is expected to remain low. This in turn lowers the pressure on the Bank of England to raise the base rate and supports activity in the mortgage market.

This backdrop is important, as recent headlines in national and international press suggest a rather gloomier picture. The referendum on Britain's relationship with the European Union - colloquially referred to as "Brexit" - has come to dominate news coverage. The mainstream residential market is broadly undeterred by the EU referendum. There could be a modest negative price impact should Brit…