Ryan Bembridge

September 23, 2016

EU Brexit European Union

Average UK asking prices have fallen by 2% since the vote to leave the European Union, research from national estate agent Jackson-Stops & Staff has revealed.

Typical asking prices now stand at £291,547 after standing at £297,508 in mid-June.

The number of properties on the market has increased since the vote, though the proportion sold has fallen by 2.5%

Why stamp duty must be reformed

Nick Leeming, chairman at Jackson-Stops & Staff, said: “Three months after the UK’s historic vote to leave the EU, the property market remains alive and active.

“There are more properties on the market today than on the day of the Brexit vote, and there has only been a marginal decline in the number of properties under offer.

“House prices have also declined only moderately.

“The normal events – families growing, the desire to downsize, a new job, a change of lifestyle – the fundamental drivers for people buying and selling property, have remained unchanged.”

In London prices have fallen by 3% since mid-June.

The upper end of the market looks in poor shape. Just 2% of properties on the market in London with asking prices above £2m are under agreed offer compared to 28% of all London properties.

Leeming added: “London has always been an island when it comes to the housing market and is governed by a range of forces that are not as strongly at play across the rest of the UK, such as significant international investment and high net worth buyers.

“The fact that there is a freeze around the higher value properties in the Capital is due to a number of factors, not just confidence levels following the Brexit vote, but also the impact of stamp duty at the very highest levels.

“Stamp duty amounts to £213,750 for a £2m priced property assuming it’s a second home which doesn’t offer a great motive to buyers.

“Our outer London branches in locations such as Wimbledon, Richmond, Teddington and Weybridge are continuing to see high levels of demand, especially among families and young professionals, showing that this market remains active.

“This reduction in confidence therefore appears to be confined to the highest echelons with properties priced in the lower bands seeing substantially more interest.

“We anticipate that the market will correct itself as we head into the final quarter of this year.”