Supply and demand static after Brexit

Ryan Bembridge

July 7, 2016

london houses

Supply and demand has stayed broadly the same after the Brexit vote in the UK property market, research from Jackson-Stops & Staff suggests.

On the day of the Brexit 41.5% of properties on the market were under offer, while yesterday 39.9% of homes for sale were under offer.

The number of properties on the market has increased by more than 21,000 since the Brexit decision.

City house price inflation slows

Nick Leeming, Jackson-Stops & Staff chairman, said: “Despite the upheaval following the Brexit decision the level of demand vs. supply has remained broadly static UK-wide, showing that in the short-term buyers and sellers are still being driven by the normal catalysts for entering the property market.

“The true impact of the Brexit decision will only become apparent in around autumn, once we have navigated through the normally quieter summer months and a new Prime Minister is in place.

“The last couple of weeks has shown us that life goes on for the UK property market. However, the endemic problem remains – the UK economy is blighted by an undersupply of homes and the government must not allow the upheaval of Brexit to wholly divert its attentions away from this central issue.”

In London housebuilders are reportedly moving from Prime and Inner London to more affordable locations.

Ben Babington, Jackson-Stops & Staff director of residential development, said:  “The residential property market has clearly felt the impact of the recent EU referendum, but there is a considerable amount of change on the horizon for the entire UK as we negotiate our path forward outside the EU.

“The market in 2015 and across 2016 has been very favourable to the ‘man on the street’ so far, an important demographic who have found themselves playing second fiddle to the might of international investors in recent years, and the key life decisions that drive these people to buy will remain unchanged.”