Brexit hits UK property – the first week
01 July 2016
By Rob Houghton
The impact of Brexit on house buying behaviour has been dramatic and immediate, both on expected property prices and on transaction volumes.
Based on 8,500 registrations on reallymoving.com in the weeks before and after Brexit (17-23rd & 24-30th June)*, the average UK property value fell 6%, from £256,000 to £239,000. There was also a 22% drop in the number of prospective home buyers registering for conveyancing quotes.
In the tables below we summarise the impact of Brexit by UK regions.
Scotland and Northern Ireland have been hardest hit – volumes fell by 37% and average prices by 15%.
London and the South East have also been heavily impacted, with volumes down 29%, although prices only down by 2%. Prices fell more rapidly in central London (10%) than other areas.
The North of England has seen less impact with volumes falling only 5%, and prices down 2%.
Prices are based on property values entered by movers when requesting conveyancing and survey quotes. Historically they closely match Land Registry reported prices, but leading by 3 months: people request conveyancing and survey quotes approximately 3 months before their move date.
We have shown the results in 5 large areas as smaller sample sizes make the results less reliable.
Demand for removals appears to be unaffected so far; we believe movers have already committed to their transaction.
Rob Houghton, CEO of reallymoving, commented: “we’re alarmed although not surprised by the sudden drop both in property value expectations and transaction volumes. We expect a medium-term recovery in both once the shock of Brexit has subsided and confidence in the strong fundamentals of the UK economy is re-established.”
* Data to midday on 30th June, and the corresponding 6.5 days of the previous week.
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