As Downing Street continues to entertain the UK with its ‘Christmas Brexit Cabinet Pantomime,’ the property market has shown obvious signs of a market slowdown.
Recent research by Emoov has looked at the current market confidence since the EU referendum and whether the UK public believe things will change once the UK makes its final curtain call and exit the EU.
According to the Office for National Statistics data, house prices have increased by £19,6667 or 9.3% since the average of £212,887 in June 2016. Emoov statistics have found that those in predominantly Remain areas of the UK have seen their property prices increase at a significantly slower rate.
Properties in Remain areas have risen by an average of 5.05% since the referendum, whilst the average growth of those in the 270 Leave districts have grown at a faster pace than the national average with 9.46% increases since the decision to leave the EU was made.
30% of the 1000 respondents believe that house prices will continue to increase despite the current uncertainty in Europe following the Brexit Draft Withdrawal Agreement. 28% are certain that property prices will flatline because of the issues in Europe and 4% are certain they will collapse.
It seems that a small majority (28%) also view a brighter future for the property market once we exit the EU completely. 24% were worried that property prices would be impacted after Brexit and 15% were anxious of a significant market meltdown following Brexit.
Russell Quirk, founder and chief executive officer of Emoov, said: “While Brexit uncertainty may have slowed the rate of price growth it’s clear that it isn’t causing the Armageddon-like scenario that many have prophesised, based both on historic data and the current majority sentiment of UK homeowners.
“Of course, there is a degree of uncertainty in the market, but this has most certainly been exaggerated and used as a tool to talk the market down for those hoping to swing a second vote. Ironically, it’s the areas with a Remain majority that have fared worse where house price growth is concerned.
“This could be coincidental, but it may also demonstrate a more business as usual attitude within the Leave majority markets, with those less phased about the implications of what they voted for stimulating both buyer demand and stock levels, while Remain areas are seeing both buyers and sellers still sat on the fence.
“The UK market has overcome far worse then it’s current predicament and will no doubt continue exceed expectations once our departure has been confirmed via Article 50.”
Whilst the steadfast ‘Brexiteers’ enjoy property price increases slightly above the national average, maybe ‘Remainers’ need to look to the future with a similar outlook in order to create market harmony and stability.
Have you noticed a significant Leave/Remainer divide in the property market? What impact will Brexit have on property prices and transactions?
