New data from DJ Alexander has revealed that house price growth has halved since the Brexit referendum.
In the 40 months from the Brexit vote to September 2019, the average house price increased by 10.1%, yet in the 40 months prior to the referendum, the average increase was 26.2%.
England was the worst affected area, with an average price increase of 9.7% over the 40 month period, compared to 28.2% over the 40 month period before the referendum.
Scotland prices rose by 10.6% compared to a 15.6% increase pre-referendum, while Wales saw price growth fall from 15.3% to 12.3%.
In the run-up to the referendum, average house prices in London were increasing 49.9%, yet in the following 40 month period, were increasing by just 1.3%. Other cities, such as Manchester, were not so dramatically affected, with a 9.8% difference in its rate of price growth.
David Alexander, managing director of Apropos by DJ Alexander Ltd, said that there was “little doubt” that the housing market experienced difficulties due to continued Brexit uncertainty, with individuals and investors unclear about the impact it would have.
This has lead to decreased demand and subsequent lower average price growth throughout the market.
While there were “considerable variations” across the country, the average house price has been subdued over the last 40 months compared to previous periods.
Alexander said: “Moving house or investing in property are decisions that are not made lightly and the confusion and doubt which have been instilled by the prolonged Brexit discussions have had an impact on all parts of the economy including the housing market which is extremely sensitive to any hint of instability.”
“It is to be hoped that the Boris Johnson administration will introduce some stability and certainty into the housing market by rapidly progressing the implementation of Brexit which will at least provide some assuredness to the market.”
He added: “The expectation would be that a period of calm where the outcome of Brexit was a bit more certain will result in rising average property prices.”
“Of course Mr Johnson has also hinted at changes to stamp duty rates which should only be introduced once the full implications for the whole of the UK are considered.
“We all want price growth, but it is better to have prolonged steady growth rather than a rollercoaster of substantial rises followed by catastrophic dips. The housing market loves stability and certainty and hopefully a degree of this will occur in the coming years.”