22% drop in home buyers looking for conveyancing quotes in wake of Brexit vote
A house moving comparison site says the number of requests for conveyancing quotes fell by 22% in the wake of the vote to leave the EU.
According to ReallyMoving.com, 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 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.
- 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%.
The site says 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.
However those currently set to move don’t appear to be bailing out. The site say demand for removals appears to be unaffected so far; we believe movers have already committed to their transaction.
Rob Houghton, CEO of reallymoving, said: “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.”