Property News

Majority of Brits overestimate how hard Brexit has hit house prices

Em Morley - November 15, 2019

Three-quarters of Brits think Brexit has had a worse impact on the UK’s house prices than it actually has, new research from Good Move shows.

Good Move, the regulated property buyer, commissioned a new study asking 2,000 Brits to estimate house prices in different UK cities. This included their own cities and how much they believe they have changed since the EU referendum. 

Since the vote in June 2016, house prices have increased in every major UK city, albeit slower than in previous periods. There has been an average growth of over £20,000. Increases were even far greater in other places, such as Edinburgh, which now has a property value of £46,000 higher than it was three years ago.

However, this study has revealed that many Brits are unaware of this information. The results show:

  • Three-quarters (74%) of Brits underestimate this rise in house prices, with nearly a third (32%) believing that house prices have actually fallen in their area since the vote.
  • More than one in eight (13%) think that they have decreased by over £10,000.
  • In 14 of the 15 cities studied, residents believe that their local house prices have increased by less than they actually have.
  • Only Londoners overestimate the rise in their local property prices, believing that they have increased by nearly £12,000 since 2016, when in fact they have only grown by £4,600.

The cities which most underestimate the growth of house prices in their area since Brexit are:

 CityHouse price growth since June 2016Residents’ estimate for house price growth since June 2016Difference between the estimated and actual growth in house prices
1Edinburgh£45,917£9,836-£36,082
2Cardiff£24,053£4,228-£19,825
3Manchester£28,225£8,867-£19,358
4Leeds£22,872£4,846-£18,027
5Glasgow£24,023£7,165-£16,858
6Birmingham£27,662£10,828-£16,833
7Bristol£26,650£10,000-£16,650
8Nottingham£21,111£8,435-£12,676
9Sheffield£18,362£7,350-£11,012
10Liverpool£16,809£6,674-£10,135

Our general knowledge of house prices around the UK was also put to the test. Respondents were asked to estimate the average property value in major cities. The results show that Brits are least aware of house prices in London, guessing that the average if over £160,000 less than the actual figure of £472,000.

They were also largely unaware of how cheaply properties sell for in Glasgow, Belfast and Nottingham, with the average guesses being over £60,000 higher than reality.

Ross Counsell, director at Good Move, said: “With so much uncertainty around Brexit, it’s perhaps unsurprising that many Brits overestimate its effect on UK house prices. While house price growth has been slowing, it appears Brexit hasn’t had the scale of impact that many believe or assume that it has.

“Our research has highlighted that many Brits are unaware of house prices in their area too. It is a good idea to keep tabs on local property values, so you are well-informed if you ever decide to move house.”

Good Move has published a quiz on its website that allows you to have a go at guessing average UK house prices for yourself: https://goodmove.co.uk/blog/how-well-do-you-know-house-prices-uk/