The impact of Brexit on house buying behaviour has been dramatic and immediate, both on expected property prices and on transaction volumes, according to Rob Houghton, CEO of reallymoving.com.
Rob said that, based on 8,500 registrations on www.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.
Regional impacts were as follows:
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Scotland and Northern Ireland have been hardest hit – volumes fell by 37% and average prices by 15%.
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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.
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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.
Demand for removals appears to be unaffected so far: Rob believes that customers have already committed to their transaction.
“We’re alarmed although not surprised by the sudden drop both in property value expectations and transaction volumes,” said Rob. “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.”
reallymoving.com was launched in the UK in November 1999, and has become a leading provider of free instant online quotes for home-moving services. reallymoving.com provides quotes for multiple moving services such as house removals, conveyancing solicitors, Chartered Surveyors and Scottish Home Reports, and allows customers to choose between local and national providers.