Brexit puts the brakes on housing market as demand and supply both falter

Demand and supply hit new lows during November as NAEA Propertymark members continue to paint a bleak picture of the market.

The trade body’s November Housing Report shows that the number of house hunters registered per estate agent branch fell last month, from 294 in October to 282 in November.

This is the lowest number of buyers recorded for the month of November since 2012, when agents registered 263.

Property supply also fell, to 35 per branch.

The number of sales agreed per branch also fell for the second month running – from nine in September to eight in October and to seven last month.

Meanwhile, the number of properties sold to first-time buyers remained at 23% for the second month running. Year-on-year, the number of sales made to first-time buyers are down from 27%.

Mark Hayward, chief executive of NAEA Propertymark, said: “Last month it was clear that uncertainty surrounding Brexit was having an impact on the sector, and this month is no different.

“We usually see a seasonal slowdown, but it’s unlikely that the time of year is the sole cause of today’s market conditions.”

Separately, London Central Portfolio has released data showing that average central London prices fell 2.7% annually during November to £1.8m.

In Greater London, prices grew by their lowest level since the global financial crisis at 0.8% to £625,457.

Across the rest of the country, prices increased by just 2.4% annually in England and Wales, the lowest growth since 2013.

Transactions everywhere were down.

Naomi Heaton, chief executive of LCP, said: “The historically low levels of transactions are now not only having a tangible impact on estate agents, but also the Treasury.

“The revenue from Stamp Duty for the first three quarters of 2018 is down by £685m on 2017.

“These already low and falling levels in transactions and prices have, no doubt, been exacerbated by the toxic atmosphere created by the UK Brexit negotiations.”

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One Comment

  1. Woodentop

    What effect will this have on share values of on-liners only, will we see the rest of them disappear next year?

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