London transactions bear the brunt of Brexit slowdown, study suggests
London boroughs have seen property sales fall by a greater proportion than the rest of the UK since the European Union referendum in June 2016, a new analysis of figures suggests.
However many areas in Wales, Northern Ireland, Scotland and the North of England are seeing more transactions than before the vote, according to the study using data from the Land Registry.
The research from fast sale estate agent Springbok Properties compared the number of transactions in the two years and nine months before the Brexit vote to the same timeframe afterward.
The biggest drop across the UK was in the London borough of Kensington and Chelsea with a fall of 42.4%, followed by Islington down 35.4%, the City of Westminster down 31.9% and Enfield down by 30.2%.
Other areas that recorded big slowdowns were typically in the South of England, with Watford down by 27.5%, Slough down 27.2%, Oxford down 25.9% and Brighton and Hove down 24.5%.
But transactions have not slowed down everywhere. Indeed, two areas in Wales have seen the biggest increase in transactions since the Brexit vote, with Torfaen up 30.6% and Newport up 25.1%.
Other strong performers were Knowsley in Merseyside with a rise of 23.5%, Antrim and Newtownabbey in Northern Ireland up 21.9%, and East Lothian and Renfrewshire, both in Scotland. Up 21.8% and 21.3% respectively.
Looking at transaction levels by country in the United Kingdom, the biggest drop in transactions was in England with a fall of 5.2%, while Northern Ireland saw the sharpest increase of 11.6%. Wales saw an 8.4% uplift in activity, while transactions in Scotland increased by 5.7%.
‘The decline of the UK property market as a result of Brexit uncertainty has been well documented and particularly in England, this decline has been spearheaded by London and the South East,’ said Shepherd Ncube, chief executive officer of Springbok Properties.
‘However, the market landscape is a vast and varied one and there are many places across the UK that have actually seen more transactions since the EU referendum then in the same time period preceding it,’ he pointed out.
‘These have largely been the more affordable areas where the reality between seller expectation and what buyers are willing to pay is far smaller than the capital and surrounding areas. As a result, less indecision on the part of both buyers and sellers has seen the market continue to operate as normal while other areas have stalled,’ he concluded.