Is Brexit affecting home-movers’ plans?

Not really, concludes Cluttons

A majority of homeowners in Britain say that ongoing fallout from the Brexit vote last June has “no impact on their intension to purchase” a property.

Estate agency Cluttons got OnePoll to ask 2,000 home-owners about what effect the triggering of Article 50 has had/is having on their property ownership position. While the top-line result is overwhelmingly meh, there are some more interesting demographic breakdowns.

Almost two-thirds (63%) of younger home-owners aged 18-24 years say they have postponed an upcoming property purchase due to concerns over the strength of the post Brexit economy;  82% of more mature types (aged 55+), meanwhile, agreed that the Brexit decision hasn’t impacted their property purchase intensions at all.

At a regional level, residents of Oxford (where 51.8% of voters said “Out” in the Referendum) were the most concerned with the impact of a failing post Brexit economy on the property market. 80% stated they were reconsidering purchasing a property since the leave victory in the referendum, which is significantly above the national average of 53.7%.

Residents in York (72.7%) and Norwich (72.2%) also admitted that the referendum result had reduced their faith in the economy and were reconsidering moving house.

Here’s a regional breakdown of where residents state that Brexit has not impacted their property purchasing intentions:

  1. South East (78%)
  2. Midlands (77%)
  3. Scotland and South West (75%)
  4. London (73%)
  5. Wales (73%)
  6. Northern Ireland (69%)

29% survey respondents agreed that they found the Brexit decision “a chance to capitalise on a failing market” with only 5% of people saying they won’t buy a house until the Brexit process has been completed.

The same proportion, 29%, of people classed base rate worries as the third top reason for not investing in a property since Brexit, with residents in Wales agreeing the most; Wrexham (75%) and Swansea (70%).

Faisal Durrani, Cluttons’ Head of Research: “Brexit has undoubtedly fuelled economic anxiety across the country. When combined with more macro issues such as the ongoing evolution of US global economic policies means we are in the midst of the most uncertain economic conditions since the Great Recession of 2008.

“That said, it is encouraging to note that despite heated discussions in the wake of the Brexit referendum results, it’s clear that our nation’s home buyers have not been deterred by political events in Westminster and many home buyers and vendors are returning to the market in their droves with a business as usual attitude. Households are keen for life to carry on as normal and the current slowdown in house price growth is just part of another property cycle, Brexit or not.”

cluttons.com