Brexit has caused UK house price growth to half since June 2016, according to property management company Apropos.
The digital platform, designed and built by DJ Alexander, found that average UK house prices increased by 10.1% over the 40 months from the Brexit vote to September 2019. In the 40 months prior to the referendum, the UK price increase was 26.2%.
England has been the worst affected area, with growth of 9.7% over the 40-month period, compared to 28.2% over the same timescale before Brexit. Prices in Scotland rose by 10.6%, compared with 15.6% pre-referendum. In Wales, the growth figures dropped to 12.3% from 15.3 before June 2016.
The data unveiled substantial variations across the country, with London average house prices increasing by 49.9% in the run-up to the referendum and then rising by just 1.3% in the subsequent 40-month period.
Other parts of the country have not been as badly affected. Manchester, for example, saw a 20.1% increase after Brexit, compared with 29.9% pre-referendum. Liverpool experienced an increase in average house price following the vote (15.4% pre-Brexit and 17.1% post-Brexit).
David Alexander, managing director of Apropos by DJ Alexander Ltd, comments: “There is little doubt that the housing market has experienced difficulties due to uncertainty caused by the Brexit referendum.”
“Individuals and investors have been unclear about the impact of Brexit and so the housing market has reflected this uncertainty with decreased demand resulting in lower average price growth.”
He says the confusion and doubt which have been instilled by the prolonged Brexit discussions have had an impact on the housing market, which is ‘extremely sensitive to any hint of instability’.
Alexander continues: “It is to be hoped that the Boris Johnson administration will introduce some stability and certainty into the housing market by rapidly progressing the implementation of Brexit which will at least provide some assuredness to the market.”
“As with all decisions in the property market, caution must be urged to ensure that the fine balance of the marketplace is maintained. We all want price growth, but it is better to have prolonged steady growth rather than a rollercoaster of substantial rises followed by catastrophic dips. The housing market loves stability and certainty and hopefully a degree of this will occur in the coming years.”