Has the housing market been overestimated by Brexit?

As this is being written, the UK sits within another difficult position. It is currently looking towards the political parties as they are now campaigning to gain the majority within parliament.

Over the last few years, there has been a lot of political conversation across Britain. Most of this has been focused on what some may see as a dreaded word, Brexit. Although, how much impact has Brexit actually had on the housing market? Should homeowners and those selling their properties be worried?

New Data

The Leeds based house buyer, Good Move, has recently produced data around homeowners and Brexit. From their research, they found that around three-quarters of Brits that they had spoken to believe Brexit has negatively impacted UK housing prices.

When conducting this data, the firm spoke to 2000 customers about property and Brexit. They asked customers to estimate prices in different UK cities and how they think they may have changed since the EU referendum.

Overall, the study revealed that Brits have been unaware to any property trends. 74% of Britons did not estimate the rise in housing prices. Nearly a third (the remaining 32%) believed that housing within their local area had fallen since the crucial vote in June 2016. One in eight that participated in the survey believed their property had decreased by £10,000.

Has there been a changed?

Across the country, there has been a slow increase in property prices. Although it may not feel like there has been an increase, since June 2016 every major UK city has had a small growth. The average growth across the country being around £20,000. In other areas, there has been an unexpected increase in housing prices. For example, in Edinburgh, the average property is now almost £46,000 higher than what it was 3 years ago.

So, connecting Good Move’s data with current trends, it seems most Brits have overestimated how hard Brexit would hit their town’s and city’s.

What other data was discovered by Good Move?

From the data analysed, it was discovered that from the 14 of the 15 cities studied, residents were certain their local area had increased less than the official trends. According to Good Move, only Londoners overestimated the rise in property prices local to them. Londoners thought that properties on average had increased by £12,00 however, they had only risen by £4,600.

Within the research, it also looked at Britons knowledge around housing and house prices. Participants on the whole thought that the average house within London was around £160,000. Although, they were less than the actual figure which is £472,000.

Those asked were also unaware of how certain cities in the UK have cheaper house prices. For example, respondents believed that housing in Belfast, Glasgow and Nottingham was £60,000 more expensive than the average price for each city.

Also, surprisingly, residents of their own cities were unaware of how low house prices were in their areas. The Glaswegians that were involved in the survey believed that housing was £84,000 above the average Glaswegian property price. Followed by residents of Nottingham thinking the average price was £56,000 above the usual.

 

Jess Mitchell

I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.

About Sophia 68 Articles
I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.

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