New Brexit Analysis Reveals Declining Property Prices and Sales in UK
London, the Home Counties and Northern Ireland Hit Hardest by Brexit
Overall, both property prices and sales in the UK have fallen by around 8% since the referendum decision to leave the European Union, but there are wide regional variations.
London, the Home Counties and Northern Ireland have been the hardest hit by Brexit, according to a survey covering the four weeks before and after the vote on 23 June carried out by ReallyMoving.
It found that sales fell by 8% and prices also fell by 8% across the country but sales were down much further in London by 44% while prices in Scotland increased by 15%.
Sales volumes fell markedly, down 12% for the month after the vote compared to the month before according to the 35,000 people surveyed who registered for quotes for conveyancing, surveys and removals with the firm.
Although some summer seasonal decline is expected, typically around 4% to 5%, the firm says that this is a seasonally adjusted 8% fall, an unusually high volume drop and the fall of 8% in average property is a significantly larger month on month change than seen at any point in the previous five years.
Looking at the breakdown in prices and transaction volumes across the UK reveals striking regional differences. While London remains by far the highest-priced region, prices have fallen 12% since Brexit, and property purchases down 44%.
The number of property purchases has fallen in all regions, most strongly in London, the Home Counties, and Northern Ireland, while Wales saw a drop of just 3%.
Although prices fell significantly in London, there were even bigger declines in the North East of England and Northern Ireland, as both fell 17%. However prices rose by 15% in Scotland and by a more modest 7% in Wales.
International moves have increased markedly since Brexit, but only for moves away from the UK, which have increased by 43%. Moves to the UK are broadly unchanged. The most popular destinations for international moves from the UK are to Spain, USA, Canada, Australia, Germany and Italy.
‘Brexit has had a marked impact on the UK property market. The drop in transaction volumes has been striking, particularly in London, the Home Counties and Northern Ireland,’ said Rob Houghton, chief executive officer of ReallyMoving.
‘In the medium term we would expect volumes to pick up if the price falls are maintained, but it is clear that many prospective home movers are sitting tight until there´s greater clarity over the post- Brexit economy and our likely new relationship with the rest of the EU,’ he added.