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Brexit uncertainty has reduced sales transactions by up to 42% in London

Leading building society says Brexit has hit the region which voted most solidly to remain the hardest along with several of its satellite commuter towns.

Nigel Lewis

Brexit House Prices image

Research by a leading building society has revealed the Brexit property transaction winners and losers following the EU Referendum in June 2016.

The Yorkshire Building Society claims the London property market has been hit hardest by Brexit uncertainty while some areas of Wales and Scotland have brushed off Brexit and seen double-digit growth.

Over the past 40 months since the vote, sales across London have decreased by 28% on average and by 43% in the worst affected borough, Brent in North London.

This compares to an average drop in sales transactions of 9% across the UK.

But the sales slump in the capital has not been restricted to suburban or unfashionable areas. Sales have dropped by 42% in Kensington & Chelsea, closely followed by the City of Westminster (-39%) and Camden (-36%).

Areas with decreases of 30% or more outside London include Slough, Watford and Redbridge.

The rest of England has either seen modest reductions in property transactions including in the East Midlands (-8%) and West Midlands (-7%) or modest increases including Scotland (+4%), Wales (+2%), North East (+1%) and Northern Ireland (+1%).

The exceptions to this rule are almost exclusively in Wales and Scotland including Torfeaen in Wales, where transactions have increased by 45%.

brexit“The housing market has become more stagnant in the UK as a whole since the EU referendum. But when we breakdown the analysis to a regional and local level, the picture becomes more complex,” says Nitesh Patel, Yorkshire Building Society’s Strategic Economist.

 

October 1, 2019

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