Prices in UK up 3.35% since Brexit vote despite warnings of slump
The average price of a home has increased by 3.35% in the last 12 months since the UK voted to leave the European Union, new research has found, up from £212,950 to £220,094.
It demonstrates that claims made by George Osborne in the run up to the historic vote that prices could fall by 18% in the next two years were wide of the mark.
A breakdown of the figures show that regions where a majority voted to leave saw the biggest increase, up 2.27% from an average of £191,611 to £195,957 today. The average house price across regions that voted remain was higher back in June at £247,471 but has only seen an increase of 1.36% since, now reaching £250,840.
The top five regions to see the largest price growth since the Brexit vote are all home to a majority leave vote with the East Midlands seeing the most substantial increase of 3.84%, followed by the West Midlands at 3.62%, the East of England at 3.46%, the North West at 2.92% and Yorkshire and the Humber at 2.92%.
When looking at all the areas to vote across the UK individually rather than grouped by region, the average house price increase across the leave majorities increases to 3.32%, again higher than the 2.08% increase across areas which voted to remain.
When splitting each region individually by the areas within them that voted to leave and those that voted to Remain, all but four have seen higher house price growth across the areas that won the overall vote.
In London, the majority vote was to remain, however, house price growth across the boroughs that voted leave has increased by 11.1% compared to just 1.90% across boroughs that were home to a majority Remain vote.
The North East, North West, East Midlands and Wales were all home to a majority Leave vote as a region. However, the areas within these regions that voted to remain have seen higher price growth than the areas that voted to leave.
In Scotland, which voted unanimously to Remain within the EU, house prices have increased by 2.84%. Northern Ireland also voted to stay in the EU, but the country’s property market has not fared as well as Scotland, with an increase of just 0.61%.
According to Russell Quirk, eMoov chief executive officer, the research makes it clear that those areas that voted to remain were home to a much higher average house price in general and it would seem that it is this upper end of the market in each region that has seen price growth slow the most.
‘What it certainly does highlight is that there are still swathes of the market, even in London, where the UK property market remains immune to any external political uncertainty, and this should stand us in good stead as we exit the EU and with the recent general election in mind,’ he added.