English Transactions Plummet 5.2% Since Referendum Result
In the two years and nine months since the referendum, housing transactions in England have fallen by 5.2% when compared with the same time frame prior to the 23rd June 2019 EU withdrawal result.
To a large extent, the decline of English property is comprised of southern regions and London boroughs. In fact, 90% of the worst hit areas, since the referendum, were areas of London.
Transactions plummeted by 42.4% in the London borough of Kensington and Chelsea whilst Westminster property transactions declined by almost a third (31.9%).
Watford property made up the tenth spot with transactions tumbling by 27.5%. Other southern regions like Brighton also faced huge transaction declines since the referendum with sales falling by as much as a quarter (24.5%).
However, many areas of the UK have adjusted and thrived since Brexit has dominated and shackled the property market according to the research taken from HM Land Registry data. In particular, Northern Irish property transactions increased by 11.6% since the referendum outcome.
Every UK country, other than England have increased their property transactions despite the political uncertainty. Welsh transactions increased by 8.4% and Scottish property has also enjoyed a boost of 5.7%.
Shepherd Ncube, Founder and CEO of Springbok Properties, commented:
“The decline of the UK property market as a result of Brexit uncertainty has been well documented and particularly in England, this decline has been spearheaded by London and the South East.
“However, the market landscape is a vast and varied one and there are many pockets across the UK that have not only weathered the storm but have actually seen more transactions since the EU Referendum than in the same time period preceding it.
“These have largely been the more affordable areas where the reality between seller expectation and what buyers are willing to pay is far smaller than the capital and surrounding areas. As a result, less indecision on the part of both buyers and sellers has seen the market continue to operate as normal while other areas have stalled.”
Will the trend in England continue to decline after a definitive outcome is announced in October? Will other UK countries suffer if Brexit negotiations are prolonged and delayed beyond the October deadline?