The psychological effects of Brexit are impacting the property market, a new report claims
The psychological effects of Brexit are impacting the property market, a new report claims – with areas that voted Remain suffering from an activity slump compared to their leave counterparts in the wake of the vote.
A new survey conducted by haart estate agents compared registration and sales data across 20 of its branches in the wake of the EU referendum. It found that, overall, listings in remain strongholds fell six per cent after the vote, while leave areas saw a one per cent bump.
Registrations at haart branches did fall across both camps, but dropped 30% on average in remain areas, and about 23% at leave branches.
Remain supporters also abandoned sales at a striking pace in the weeks following the vote, up 50 per cent compared to the period before the referendum. That is compared with a two per cent drop in abandoned sales in leave areas.
“It’s clear that the ‘winners’ of the EU referendum are feeling much more confident about the future of the property market than those who voted remain,” haart CEO Paul Smith said.
“The reality is that we have a property market heavily driven by sentiment, and it’s the confident leavers who are currently keeping the market afloat,” Smith added.
Registrations in Bristol, a city which voted 62% to remain part of the EU, dropped 34% with a 42% increase in abandoned sales. Similarly, Great Shelford in South Cambridgeshire, which supported remain by 60%, saw a 42% drop in registrations.
Meanwhile, there was a 25% rise in listings in Doncaster, where voters supported the leave campaign by 69%.
Barnsley – another leave stronghold – saw dropped sales decrease by 39% after the Brexit vote.
London, haart explained, is bearing the brunt of post-Brexit uncertainty. Property prices dropped 5.6% in July, wiping £30,000 off the average property, valued at around £527,349. Sales in the capital slumped 16 per cent last month and new buyer viewings fell 3.3%.
Smith now says it’s up to the government to steady the ship and prove to remain supporters that they have no reason to fear Brexit.
“If the government can continue to provide a strong vision for the UK’s post-Brexit future and a clear timetable for an EU exit, greater stability and confidence will follow, which might reassure Remainers.”