Hometrack: Impact of Brexit vote has been limited

Ryan Bembridge

November 28, 2018

Brexit’s impact on the UK housing market has been limited despite dominating the political and media agenda, Hometrack said following results in its UK Cities House Price Index.

The report found that six of the UK’s largest cities are posting year-on-year growth figures over 6%: with Leicester (7.7%), Edinburgh (7.4%), Manchester (6.3%), Birmingham (6.2%), Nottingham (6.1%) and Liverpool (6.0%) all performing strongly.

Richard Donnell, insight director, Hometrack, said: “Two and a half years on from the Brexit vote, our analysis reveals a limited direct impact from Brexit uncertainty on the housing market thus far.

“Large regional cities continue to register above average house price inflation with the discount between asking and sales prices narrowing on rising sales volumes.”

London is currently registering a year-on-year fall in house prices of -0.4%.

Donnell added: “London led the housing recovery since 2009 and now it is leading the slowdown as weaker market fundamentals – stretched affordability, multiple tax changes, new mortgage regulation – have constrained demand and reduced sales.

“While the uncertainty from the Brexit vote has compounded this reduction in London house price growth it hasn’t been the root cause.

“In the very near term we expect market trends to continue until the outlook becomes clearer.

“Housing markets in regional cities certainly appear to be in more of a business as usual mode while the London market continues to adjust though modest price falls.

“Our lead housing indicators suggest no imminent deterioration in the outlook for prices or levels of market activity.”

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