There has been a significant fall in residential property transactions across the UK which has had an adverse impact on home prices which have also fallen since the outcome of the EU vote, a new report claims.
Reallymoving.com, which provides free instant online quotes for home-moving services, analysed activity among 35,000 people who registered for quotes for conveyancing, surveys and removals in the four weeks before and after the Brexit referendum, and found that overall, both property prices and transaction volumes fell by around 8% on a seasonally adjusted basis, with London, the Home Counties and Northern Ireland hardest hit.
The analysis of the UK property market shows that transaction volumes have fallen markedly, down 12% for the month post-Brexit compared to the month before. This is based on conveyancing and survey quote requests on Reallymoving.com. Although some summer seasonal decline is expected, typically around 4-5%, this is a seasonally adjusted 8% fall which is an unusually high volume drop.
Average property prices have also fallen sharply, down by around 8% – the largest month-on-month fall for more than five years.
Looking at the breakdown in prices and transaction volumes across the UK reveals striking regional differences. While London remains by far the highest priced region, prices have supposedly fallen 12% since Brexit, and property purchases down 44%.
The number of property purchases has fallen in all regions, led by London, the Home Counties and Northern Ireland, while Wales saw a drop of just 3%.
Although prices fell significantly in London, the data, which should be taken with a pinch of salt, revealed that there were even bigger declines in the North East of England and Northern Ireland; both fell 17%. But prices rose by 15% in Scotland and by a more modest 7% in Wales.
According to the figures, there has been an increase in the number of people fleeing the UK post-Brexit, as reflected by a jump in international moves since Brexit, with moves away from the UK having increased by 43%. The most popular destinations for international moves from the UK have been to Spain, USA, Canada, Australia, Germany and Italy.
Rob Houghton, CEO of reallymoving commented: “It seems clear that Brexit has had a marked impact on the UK property market. The drop in transaction volumes has been striking, particularly in London, the Home Counties & Northern Ireland.
“In the medium term we would expect volumes to pick up if the price falls are maintained, but it is clear that many prospective home movers are sitting tight until there’s greater clarity over the post-Brexit economy and our likely new relationship with the rest of the EU.”
