Post-referendum chill starts to show

The first set of post-referendum housing market data is consistent with our expectations of a slump in transactions over the next 6 to 12 months. That said, while the picture painted by the main house indices has been benign, the collapse in house price expectations, alongside the drop in asking prices recorded by Rightmove, are of some concern. But on balance, and with the MPC loosening policy, we maintain our view that the house prices will avoid a sustained correction following the Brexit vote.