How has Brexit impacted on market conditions?
A new investigation has looked at the impact that the Brexit result has had on the number of property listings in major UK towns and cities.
Figures from the Property Supply Index, compiled by HouseSimple, suggests that 68% of locations saw listings slide in June. London saw a 13% drop.
Index
In order to compile its Property Supply Index, HouseSimple looked at the number of new properties put onto the market every month, in over 100 major towns and cities. The analysis also looked at all London boroughs.
Results indicate that Lichfield and Winchester saw the largest drop in supply in June, with new property listings down by 37% and 36.5% respectively. Interestingly, four out of the top ten largest fallers were located in the South of England.
The table below shows the ten UK towns and cities that saw the largest falls in new listings in June, in comparison to May:
| Town/City | Region | % fall in new listings in May vs. April |
| Lichfield | West Midlands | -37.0% |
| Winchester | South | -36.5% |
| Chesterfield | East Midlands | -34.9% |
| Salisbury | South West | -33.3% |
| Exmouth | South | -29.8% |
| Hartlepool | North East | -29.6% |
| Bangor | Wales | -29.5% |
| Grimsby | Yorkshire and the Humber | -27.6% |
| Bath | South West | -24.4% |
| Weston-Super-Mare | South West | -19.9% |
How has Brexit impacted on market conditions?
Despite the majority of areas seeing falling supply in June, a few regions experienced rises. The largest increases were located in the Scottish towns of Inverness and Stirling, where new listings were up by 30.5% and 18.5% respectively.
Uncertainty
Alex Gosling, CEO of HouseSimple.com, observed, ‘fear and uncertainty over the Brexit vote definitely had an impact on buyer and seller confidence in June, with many sellers holding off putting their properties on the market until the result was known. Now we know and although the decision has come as a bit of a shock, at least a degree of uncertainty has been taken out of the equation.’[1]
‘The property market can now roll up its sleeves and get on with it. Nothing has fundamentally changed overnight and people still need to buy and sell homes whatever the market conditions.We still have a supply shortage, and this may well counter any fallout from Brexit. There were concerns about the London market faltering, but demand is still strong in the capital and the weak pound should attract foreign investors looking to pick up bargains – particularly at the top end of the market,’ he continued.[1]
Concluding, Mr Gosling said, ‘for the rest of year, we may see a small dip in prices as there are choppy seas ahead, but it’s certainty not the end of the world levels predicted by some doom-mongers. Supply should hopefully edge up, as fears around the impact of Brexit dissipate and sellers feel more confident about market conditions and the wider global economy.’[1]
[1] http://www.propertyreporter.co.uk/property/has-brexit-hit-buyer-and-seller-confidence.html
